For which of the following purchases would the absolute price elasticity of demand be smallest?
A) a sports car
B) utilities
C) chewing gum
D) a cell phone
C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Members of the European Union decided to adopt a single currency by what year?
A) 2008 B) 2005 C) 1999 D) 1992
Suppose that Sweden imposes a retail disposal charge on household batteries. To assure that allocative efficiency is achieved, this charge should be set equal to
Use the following forany or all of Questions 11 through 13 below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston. MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q MEC= 0.75Q MEB= 0 whereQ is the number of trash containers serviced per household per month. a. the vertical distance between MSB and MPB at QC b. the marginal social benefit at QE c. the MPC associated with battery production d. the ?MEB at the efficient equilibrium
John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. ?Prefer buying in the US b. ?Prefer buying in Mexico c. ?Be indifferent about where he buys his television d. ?None of the above