If the price elasticity of demand is elastic, then:
a. Ed < 1.
b. consumers are relatively not very responsive to a price increase.
c. an increase in the price will increase total revenue.
d. there are likely a large number of substitute products available.
d
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If cyclical unemployment is negative, then
A) the actual unemployment rate is below the natural rate of unemployment. B) the natural rate of unemployment is getting smaller. C) there have been some errors in classifying the type of unemployment experienced by some people. D) structural unemployment must be increasing.
Government mandated safety standards within firms
A) will always decrease efficiency. B) can increase efficiency by avoiding a prisoner's dilemma outcome. C) are unnecessary because of asymmetric information. D) will create unfair competition among firms.