When the absolute price elasticity of demand equals 1, demand is
A) elastic.
B) unit-elastic.
C) inelastic.
D) undetermined without more information.
Answer: B
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Institutions and laws, such as patent protection, that foster innovations lead to economic growth because they
A) give businesses loans to buy new machinery. B) give confidence to consumers that the products they buy are safe. C) allow the government control of the innovations. D) give confidence to inventors that they will profit from their innovation.
When the government contributes to a public good, private contributions will fall.
Answer the following statement true (T) or false (F)
Since 1950,
A) the average length of expansions in the United States have become longer as compared to before 1950. B) the average length of expansions in the United States have become shorter as compared to before 1950. C) economic expansions in the United States have been so short that expansions barely exist. D) the average length of expansions in the United States are about the same length as compared to before 1950.
Compared to an electronic payments system, a payments system based on checks has the major drawback that
A) checks are less costly to process. B) checks take longer to process, meaning that it may take several days before the depositor can get her cash. C) fraud may be more difficult to commit when paper receipts are eliminated. D) legal liability is more clearly defined.