During your foreign travel in South Asia, you acquired an expensive, elaborately woven textile, size 1 meter by 2 meters. At customs as you are returning to your home, the official asks if it is a rug or a decorative wall hanging. What do you reply?

Gross National Product is equal to:

(a) C+I+G+X-M. (b) C+I+X-M (+) or (-) NFY. (c) C+I+G +NX. (d) C+I+G+X-M (+) or (-) NFY.

Figure 4-25

Refer to . The tax causes a reduction in consumer surplus that is represented by area
a.
A.
b.
B + C.
c.
D + E.
d.
F.

Demand is inelastic if

A. a given percentage change in price will result in a greater than proportionate percentage change in the quantity demanded. B. a given percentage change in price will result in a less than proportionate percentage change in the quantity demanded. C. small price increases will lead to zero quantity demanded. D. demand exhibits zero responsiveness to price changes.

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,

A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.