Suppose the price elasticity of supply for crude oil is 2.5. How much would price have to rise to increase the quantity supplied by 20%?
A. 20%
B. 8%
C. 12.5%
D. 45%
Answer: B
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The interest rate the Federal Reserve charges commercial banks to borrow reserves is called the ________ rate.
A. prime B. discount C. Fed funds D. Federal
A monopoly:
A. is constrained because its decisions cannot affect market price. B. is constrained by demand. C. faces a horizontal demand curve. D. is constantly threatened by the entry of new firms.
Which of the following activities would be included in GDP?
A. You buy a cake from a local bakery for $30. B. You pay a friend $30 to bake a cake. C. You bake a cake for yourself. D. All of these would be included in GDP.
Which of the following graphs or charts must add up to one hundred percent?
a. a labor graph b. a pie chart c. a time-series graph d. a scatter diagram