Arrange the following goods from least to most elastic, explaining your ordering: gasoline, Exxon gas, Exxon gas at a particular gas station
Gasoline is least elastic, since there are few substitutes for the entire category of this good in the operation of cars. Exxon gas at a particular station is most elastic, since one can substitute other Exxon stations or other brands of gas.
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When the official dollar price of a foreign currency is set below its equilibrium level, the foreign currency
A) has been depreciated. B) is overvalued. C) is undervalued. D) is devalued. E) is revalued.
If the Consumer Price Index (CPI) had a value of 128 in 2007, this means that during the period between the base year and 2007:
A. All prices increased by 28 percent. B. All prices increased by an average of 1.28 percent. C. Prices of goods and services that the typical consumer buys increased by an average of 28 percent. D. Prices of goods and services that the typical consumer buys increased by an average of 128 percent.
Refer to the graph shown. Economic output in year 0 is $50 billion. What is potential output in year 2?
A. $51.5 billion B. $50 billion C. $53.0 billion D. $54.6 billion
Refer to Table 1-2. Using marginal analysis, how many hours should Julius extend his shop's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours