When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to
A) 3.
B) 3/7 or 0.4286.
C) 1/3 or 0.3333.
D) 1/4 or 0.25.
C
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Surgical specialists earn more than general/family practice physicians. Which of the following statements is not true regarding this income differential?
a. Surgeons earn more because their practice costs, including medical malpractice insurance is higher. b. Surgeons earn more to compensate them for the extra years spent as residents. c. Physicians' incomes are determined to a large extent by supply and demand conditions with respect to each specialty. d. Surgeons will always earn more than general practitioners because they are smarter than general practitioners. e. Surgeons earn more than general practitioners because cutting into people is messy.
Which of the following subcomponents of GDP can be either positive or negative?
a. inventory investment b. exports c. government purchases d. All of the above are correct.
Suppose the banking system has $100,000 in outstanding deposits and actual reserves of $35,000. If the required reserve ratio is 25 percent, the maximum amount the banking system can now add to the money supply is:
A. $25,000. B. $10,000. C. $40,000. D. $50,000.
The value of Austria's exports minus the value of Austria's imports is called
a. Austria's net exports.
b. Austria's net imports.
c. Austria's foreign portfolio investment
d. Austria's foreign direct investment.