The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 percent increase in the price of beef, holding every thing else constant, will cause the quantity of beef demanded to
A) decrease by 12 percent. B) decrease by 26 percent.
C) decrease by 32 percent. D) decrease by 60 percent.
A
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Since 1982, the United States has run a current account surplus every year
Indicate whether the statement is true or false
For all intents and purposes, the Great Depression ended in
A. 1933. B. 1937. C. 1941. D. 1945.
In 2007, investment in France increased by 7 billion euros. Which of the following occurs?
I. an upward shift in the AE curve II. a leftward shift in the AD curve III. an increase in the price level and real GDP in the short run IV. an increase in the price level and no change in real GDP in the long run. a) I, II, III, & IV b) I & III only c) I, II, & IV only d) III & IV only
Figure 6.2 shows the cost structure of a firm in a perfectly competitive market. Suppose the current market price is $10 and the firm produces the profit-maximizing output level. If the firm's total fixed cost increases due to a new government regulation, the short-run response of the firm should be to:(Note: since the question does not restrict the firm's response to the short run, we can't rule out that the rise in fixed cost will push the firm below the breakeven point and that the firm will exit the industry in the long run,
thus decreasing its current output level.) A. produce its current output level. B. increase its current output level. C. decrease its current output level. D. There isn't sufficient information.