Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based on this information, we can conclude that over the price range from $19 to $20, demand is price:
A) elastic.
B) unit elastic.
C) inelastic.
D) cannot be determined.
A
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Tennis balls and tennis rackets are complements. If a 3 percent change in the price of a tennis racket leads to a 9 change in the quantity of tennis balls demanded, the cross elasticity of demand equals
A) 3. B) -3. C) 1/3. D) -1/3. E) 9.
Which of the following statements is false?
A. The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B. Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C. When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D. A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
The body that directly oversees the 12 regional Federal Reserve banks is the:
A. Federal Open Market Committee. B. U.S. Congress. C. Board of Governors. D. Federal Advisory Council.
Which of the following correctly describes the relationship between productivity growth, unemployment, and the economy's production possibilities frontier?
A) An increase in productivity moves the economy from inside the production possibilities set to its frontier. B) An increase in productivity shifts the economy from the production possibilities frontier to a point outside the production possibilities set. C) An increase in unemployment shifts the economy further inside its production possibilities set. D) An increase in unemployment shifts the economy from a point outside the production set back to the production possibilities frontier. E) A reduction in unemployment shifts the entire production possibilities frontier outward.