The point elasticity is a measure of the sensitivity of consumers to a large price change - a range from one price to another.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2An important and often ignored opportunity cost is the:
a. cost of accounting services.
b. cost of missed market opportunities when funds are invested in a firm.
c. cost of interest paid to bondholders by the firm.
d. cost of utilities used by the firm.
QUESTION 3People leave their home country and go to another country to live primarily because they seek a higher quality of life.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4If consumer income increases, then the demand for an inferior good shifts right.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Which of the following observations is true?
a. Sunk costs are irrelevant for any future action.
b. Sunk costs should not be ignored when making decisions.
c. Sunk costs are often hidden.
d. Sunk costs can be recovered using corrective measures.
QUESTION 6The Chinese Exclusion Act of 1882 was the first restriction on immigration, in the U.S.
a. True
b. False
Indicate whether the statement is true or false
Quick Reply
