When the slope of a demand curve is constant, price elasticity of demand can vary.
Answer the following statement true (T) or false (F)
True
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Because local banks earn fees for each loan, their role to:
A. properly assess the risk of each borrower is misaligned with their incentive. B. create not many mortgages perfectly aligns with their incentives. C. provide mortgage loans only to those with low credit scores is misaligned with their incentive. D. properly assess the risk of each borrower is perfectly aligned with their incentive.
The demand curve for any input is the downward-sloping portion of its marginal revenue product curve
a. True b. False Indicate whether the statement is true or false
Economic theory suggests that the standard of living of American workers would rise if
a. technological setbacks lowered output per worker hour, increasing the number of jobs. b. the minimum wage were doubled. c. older workers were forced to retire earlier, opening up jobs for younger workers. d. the knowledge and skills of workers improved
As China's auto production capability has evolved, it is unclear whether protection was beneficial or harmful. Why?
a. Accounting data must be translated from Chinese to English, and that is a difficult task. b. After 30 years of infant industry protection, the tariff on auto imports is still significant (a 25% tariff). c. China will probably never achieve exports, so whether any gains were made is unclear. d. Chinese consumers are exerting more market power, and they are opposed to any kind of import protection.