If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent, then the elasticity of demand is
A) 0.
B) 1.
C) indeterminate.
D) 5.
E) 25.
B
Economics
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When politicians debated the North American Free Trade Agreement (NAFTA), some told stories of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor of protection was being used?
A) Save domestic jobs argument B) National security argument C) Anti-dumping argument D) Infant-industry argument E) Diversity and stability argument
Economics
A unique resource can serve as
A) an economic profit B) a sunk cost C) an entry barrier D) none of these choices
Economics