Economists Use the Percentage Change in Quantity Rather Than the Absolute

question 106

Multiple Choice

Economists use the percentage change in quantity rather than the absolute change in quantity for elasticity calculations because:

• A) percentage changes are easier to calculate than absolute changes.
• B) elasticity measurements come out the same when using percentage changes regardless of the unit of measurement used for quantity.
• C) absolute changes in quantity are difficult to convert to changes in price.
• D) absolute changes often result in negative numbers.

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Definitions:

Truth

Truth is the property of being in accord with fact or reality, often considered as objective, universal, or corresponding to actual states of affairs.

Two-World Assumption

The belief in a distinct separation between the tangible, empirical world and an intangible, often spiritual or theoretical world.

Skepticism

The philosophical belief that knowledge is not possible, that doubt will not be overcome by any valid arguments. A philosopher who holds this belief is called a skeptic. Skepticism is not merely personal doubt but also requires systematic doubt, with reasons for that doubt.

Rationalists

Philosophers who believe that reason is the chief source and test of knowledge, as opposed to experience or sensory perception.