The price elasticity of cigarettes has been estimated as -0.5. The government has decided that they want to decrease the amount that people in the United States smoke by 10%. It follows that they must institute measures that would raise the price of cigarettes by
a. 5%
b. 10%
c. 15%
d. 20%
d. 20%
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Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?
A) American troops build roads in Afghanistan. B) Through World Vision, women and children in Africa receive education. C) Peace Corps volunteers teach English around the world. D) Creating Hope International trains women in Afghanistan to become tailors. E) Habitat for Humanity builds houses for low income families in the United States.
If $1,000 is placed in an account earning 8% annually, the balance at the end of seven years will be
A) $1,080. B) $1,560. C) $2,000. D) $1,714.
An individual's quantity of money demanded
a. refers to how much money the individual would like to have b. refers to the amount of money an individual needs to maintain her desired standard of living c. refers to her wealth constraint d. refers to the amount of her wealth that an individual chooses to hold in the form of money e. is virtually unlimited
What makes a model compelling?
a. its predictions b. its mathematical structure c. its assumptions d. its simplicity