Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels
Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.) A) 1
B) 0.47
C) 2.14
D) 0.29
B
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The report that concluded that the world will run out of oil in about 40 years used which formula to calculate the number of years to depletion?
A) (proven reserves + unknown reserves) ÷ annual consumption = number of years to depletion B) total reserves ÷ total consumption = number of years to depletion C) proven reserves ÷ annual consumption = number of years to depletion D) proven reserves ÷ unknown reserves = number of years to depletion
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her accounting profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
In the IS-LM model, equilibrium income can be affected by
A) fiscal policy alone. B) monetary policy alone. C) both fiscal and monetary policy. D) neither monetary nor fiscal policy.
Money is created through the banking processes of taking deposits and making loans if
A) the banks require individual depositors to hold "reserves." B) the banks require individual borrowers to hold "reserves." C) paper deposit receipts are not acceptable means of payment. D) paper deposit receipts are accepted as a means of payment.