Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve.
B) Arc elasticity of demand only applies to a nonlinear demand curve.
C) Point elasticity of demand is measured at each point along a demand curve.
D) Point elasticity of demand is measured between two adjacent points on a demand curve.
C
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Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?
If a nation is going to achieve and sustain a high rate of economic growth, it must
What will be an ideal response?
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The functional distribution of income measures which of the following?
A) the distribution of income among households B) how federal tax revenues are related to the business function that employs taxpayers C) the proportion of income generated by the four types of expenditures on goods and services D) the distribution of earnings by the factors of production E) the distribution of income among nations