If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good
A) as not very sensitive to price.
B) as not very sensitive to the quantity they demand.
C) as very sensitive to price.
D) as elastic.
A
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All of the following are examples of positive statements EXCEPT:
A. Tax revenues increase as output per person increases. B. High rates of economic growth are undesirable because of the destruction caused to the environment. C. Growth in an economy generates a budget surplus. D. As output per person increases access to consumer goods increases.
In conducting positive economic analysis, economists apply
A. subjective value judgments. B. the principle of individual sovereignty. C. moral values. D. the scientific method.
High training costs make it more costly for consumers to switch products. This is an example of
A. Barriers to entry. B. Contestable markets. C. Government regulation. D. Cartels.
A decrease in the wage rate will change
A. the amount of labor employed, and it may also change the amount of other inputs employed. B. the firm's profit-maximizing level output, but not its usage of inputs. C. only the amount of labor hired. D. the price the firm charges for the product, but it will not affect the demand for any of the inputs.