Why isn't slope as useful as elasticity to measure the responsiveness of one variable to another?
What will be an ideal response?
The numerical value of slope depends on the units used to measure the variables on the axes. Thus, if two demand curves represent the same demand behavior but are measured in different units (ounces versus pounds, for example), we will get two different measures of responsiveness. Elasticity does not have this problem because it is calculated using percentage change.
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The impact of technology on health care has
A) provided for a higher quality of life. B) increased health care costs. C) contributed to increased life expectancy. D) All of the above are correct.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and current
international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and current international transactions balance remain the same. d. The real risk-free interest rate rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.