How do economists compute the price elasticity of demand?
a) the percentage change in the price divided by the percentage change in quantity demanded
b) the percentage change in income divided by the percentage change in the quantity demanded
c) the percentage change in the quantity demanded divided by the percentage change in price
d) the percentage change in the quantity demanded divided by the percentage change in income
Answer: c) the percentage change in the quantity demanded divided by the percentage change in price
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Governmental rules that significantly promoted entrepreneurship first became prominent during the
A. Great Recession. B. Age of Enlightenment. C. Great Depression. D. Industrial Revolution.
Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?
a. $600 million
b. $700 million
c. $2.4 billion
d. $2.8 billion
Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost.
B) Yes, because price equals average total cost.
C) No, because price is greater than marginal cost.
D) Yes, because it produces where marginal cost equals marginal revenue.
Comparing ________ can give us some sense of what the multiplier actually is in the economy.
A. hard money to fiat money B. hard money to M2 C. M1 to M2 D. hard money to M1