If a one percent increase in the price of oranges leads to a five percent increase in the quantity supplied, the price elasticity of supply for oranges is ________.
A. 1/2
B. 5
C. 1/5
D. 2
Answer: B
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The demand curve for a typical good has
A. a negative slope because consumers purchase less of the good as the price rises. B. a negative slope because the supply of the good rises as demand rises. C. a negative slope because the good has less “snob appeal” as its price falls. D. a positive slope because as the price goes up, the good has more profitability. E. a positive slope because price is a clear indicator of need.
Which of the following is true?
i. Comparative advantage drives international trade. ii. Compared to a no-trade situation, imports make domestic producers better off. iii. Tariffs lower the domestic price of imported goods. A) Only i B) Only ii C) Only iii D) i and ii E) i and iii
In the Unites States, the Gini coefficient was .403 in 1980 and .469 in 2010 . What information on income distribution can be derived from this data?
A rise in the domestic interest rate leads to capital outflows and makes the currency depreciate
a. True b. False Indicate whether the statement is true or false