Economists Use the Percentage Change in Quantity Rather Than the Absolute

question 138

Multiple Choice

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

• A) percentage changes are easier to calculate than absolute changes.
• B) the measured elasticity is the same regardless of the unit of measurement for quantity.
• C) absolute changes are confusing to convert.
• D) absolute changes often result in negative numbers.

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Definitions:

Subgroups

Smaller groups formed within a larger group based on common interests, objectives, or characteristics.

Egocentric Perceptions

refer to the tendency to interpret and judge events from one's own point of view, often neglecting others' perspectives.

Scarce, Desired Resources

Resources that are in limited supply but are highly sought after due to their value or utility.

Realistic Conflict

A theory suggesting that conflict and antagonism between groups is caused by direct competition for limited resources.