If the price of gasoline increases from $2.50 per gallon to $3
00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately A) 0.23.
B) 4.35.
C) 0.93.
D) 2.34.
A
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A) technical efficiency B) objective efficiency C) economic efficiency D) engineering efficiency
If the Federal Reserve purchases government securities,
A) banks' reserves will increase. B) the federal funds rate will rise. C) the discount rate will be forced higher. D) None of the above answers is correct because none of the effects occur.
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would not have control of the business. B) As a sole proprietor, Torrie would face unlimited liability. C) As a sole proprietor, Torrie would be taxed twice. D) As a sole proprietor, Torrie would be subject to significant rules and regulations.
The main goal of macroeconomic research is to
A) predict how the macroeconomy will perform in the future. B) analyze current macroeconomic data. C) develop new data that can be used to understand better the operation of the economy. D) make general statements about how the economy works.