Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates:
A. the percentage change in quantity demanded will equal the percentage change in price.
B. the percentage change in quantity demanded will equal one.
C. both the percentage change in price and quantity demanded must equal one.
D. the percentage change in quantity demanded and the percentage change in price must sum to one.
A. the percentage change in quantity demanded will equal the percentage change in price.
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Several students had the idea that they could get rich if they opened a dating service on campus. Others were skeptical that the information on those services is either not true or exaggerated but the enterprising students tell them a campus based system will be much more reliable. This claim
A. does not make sense because college students are risk lovers by nature and would make false claims. B. is false because the stigma of the newcomer will exclude freshman from the service. C. makes sense because a campus has many close relationships so exaggerated claims would be easily exposed. D. makes sense because college students are risk averse by nature and would not make claims that could get them in trouble.
A program under which the government gives all citizens a substantial lump sum payment that is financed by a tax earned income is termed a(n):
A. unearned income tax credit. B. in-kind transfer. C. positive income tax. D. negative income tax.