If the demand curve for a product is horizontal, then the elasticity of demand is:
a. equal to zero
b. equal to one.
c. greater than one, but less than infinity.
d. equal to infinity.
d
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In the United States, of the following decades inflation was highest during the ________.,
A) 1970s B) 1990s C) 1960s D) 2000s
The maximum likelihood estimation method produces, in general, all of the following desirable properties with the exception of
A) efficiency. B) consistency. C) normally distributed estimators in large samples. D) unbiasedness in small samples.
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 36 and WR = 25 and the probability of drought is 0.75. What is Brandon's expected utility?
A. 5.75 B. 33.25 C. 11 D. 30.5
Using the expenditure approach, which of the following is added to consumption, investment, and government purchases to arrive at GDP?
a. The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and baby sitter. b. The value of resale goods produced in the economy. c. The unpaid-for services provided by the natural environment, such as breathable air. d. The value of exports minus the value of imports.