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:

Population Standard Deviation

A measure of the dispersion or variability in a population data set.

Confidence Interval

A range of values, derived from sample data, that is believed to contain the true population parameter with a certain level of confidence.

Sample Mean

The mean of all data points within a sample, utilized to approximate the mean of the entire population.

After-Tax Profit

The net profit of a company after all taxes have been deducted from revenues.