For any horizontal demand curve, the price elasticity of demand is:
A. equal to the price of the good.
B. 1.
C. infinite.
D. 0.
Answer: C
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The table above gives information about the economy of Spain. If the growth rate in 1998 is maintained, real GDP will double in ________ years
A) 10 B) 18 C) 19 D) 4 E) 25
When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above
The number of futures contracts outstanding is called
A) turnover. B) volume. C) float. D) open interest.
An appreciation of Canadian currency means that
a. Canada's exports will become less expensive b. Canada's imports will become more expensive c. Canada's imports will become less expensive d. it now requires more Canadian currency (CDN $) to exchange for one unit of another currency e. it now requires less of other currencies to exchange for a unit of Canadian currency (CDN $)