. Economists use the percentage change in quantity rather than the absolute change in quantity because:
A. percentage changes are easier to calculate than absolute changes.
B. the measured elasticity is the same regardless of the unit of measurement for quantity.
C. absolute changes are confusing to convert.
D. absolute changes often result in negative numbers.
B. the measured elasticity is the same regardless of the unit of measurement for quantity.
You might also like to view...
In the figure above, the point labeled C in the production possibilities frontier
A) is unattainable; it is beyond the productive capability of this country. B) represents a highly desirable output level in the long run, because it conserves scarce resources. C) represents either unemployed or inefficiently utilized resources. D) represents the maximum sustainable output level for this nation in the long run.
The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) an interest rate panic. B) the Taylor rule. C) a zero-sum game. D) a liquidity trap.