The numerical value of a price elasticity represents the percentage amount by which the quantity demanded changes when the price
a. increases by 1 unit
b. changes by 1 percent
c. is in equilibrium
d. is fixed in the market
e. falls by 1 dollar
B
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One News Wire article in the text is titled "Fed Cuts Key Interest Rate Half-Point to 1 Percent." Which of the following is the Fed trying to accomplish as a result of this action?
A. A leftward shift of aggregate demand. B. A rightward shift of aggregate demand. C. A leftward shift of aggregate supply. D. A rightward shift of aggregate supply.
Why do most people choose to specialize in a narrow set of skills for their work, rather than to learn a little bit about several varied fields of endeavor?
A) They feel that doing so will minimize their chances of being unemployed. B) They don't correctly perceive the costs of being so specialized. C) It allows them to earn more income by being more productive. D) They are unaware of how much better off they would be if they diversified their skills.