If the demand for a good is highly elastic, that good is likely to have:
A. many close substitutes.
B. many close complements.
C. few close substitutes.
D. few close complements.
Answer: A
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In the four decades from 1860 to 1900, the U.S. population nearly tripled. Real Gross Domestic Product (GDP)
(a) fell by more than the amount by which the population increased. (b) fell by the same amount by which the population increased. (c) rose at about the same rate as the population increase. (d) increased by even more than the population increase.
The domestic demand curve, domestic supply curve, and world supply curves for a good are given in the above figure. All the curves are linear. Initially, the country allows imports. Then imports are banned
Calculate how consumer and producer surplus change because of the ban. Is the country better off with the ban on imports? Why?
Which of the following is not true about a special drawing right (SDR)?
a. The SDR is a composite currency. b. The value of the SDR is an average of the values of the currencies of major industrial countries. c. The SDR was created in 1980 by the World Bank. d. The SDR is an international reserve asset. e. The SDR is used to settle international debts.
Figure 17-9
Refer to . The amount of revenue collected by the government from the tariff is
a.
$200.
b.
$400.
c.
$500.
d.
$600.