In Pioneer Ville, the price elasticity of demand for bus rides is 0.5 . When the price of a bus ticket rises by 5 percent, _______
A. the demand for bus rides increases by 10 percent
B. the quantity of bus rides demanded increases by 2.5 percent
C. the demand for bus rides decreases by 2.5 percent
D. the quantity of bus rides demanded decreases by 2.5 percent
D The quantity of bus rides demanded decreases by (0.5) × (5 percent), which is 2.5 percent.
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A bank's reserves include
A) the cash in its vault plus the value of its depositors' accounts. B) the cash in its vault plus its deposits held at a Federal Reserve bank. C) the cash in its vault plus any gold held for the bank at Fort Knox. D) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.
All of the following are examples of spending on factors of production in the circular flow model except
A) Bima hires two students to work at his ice-cream store. B) Iris buys a dozen roses for her mother's birthday. C) "Get Fit Together" purchases 3 new treadmills for its gym. D) The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.
According to an EPA task force that examined risk assessment,
a. expert risk rankings are in line with those of the general public b. only expert risk rankings are relevant c. the federal government’s environmental priorities are consistent with expert risk ranking d. none of the above
The relationship between quantity supplied and price is __________ and the relationship between quantity demanded and price is ____________.
A. direct; direct B. inverse; inverse C. inverse; direct D. direct; inverse