The price elasticity of demand for gasoline is 0.40. If the price of gasoline rises by 20 percent, there will be
A) a decrease of more than 20 percent in the quantity of gasoline demanded.
B) an increase in the total revenue received from the sale of gasoline.
C) a loss of total revenue for gasoline producers, because at a higher price the quantity of gasoline demanded decreases.
D) no change in the quantity of gasoline sold because people need gasoline.
B
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Use the following graph to answer the next question.
If the initial equilibrium interest rate was 5% and the money supply increased by $100 billion, then the new interest rate would be
A. 1%. B. 2%. C. 3%. D. 4%.
If the labor market in the above figure is competitive, what is the equilibrium wage and quantity of labor hired?
A) $10 and 100 hours B) $10 and 50 hours C) $5 and 100 hours D) $15 and 50 hours
The exchange rate system agreed to in 1944, in which the U.S. government agreed to buy or sell gold at a fixed price of $35 per ounce, is referred to as
A) the Bretton Woods System. B) the gold standard. C) a flexible exchange rate system. D) a floating currency standard.
The Bureau of Labor Statistics is part of the U.S. Department of Labor
a. True b. False Indicate whether the statement is true or false