Suppose new oil reserves are discovered that were not previously known. What happens to the user cost of oil?
A) Decreases
B) Increases
C) Remains the same
D) May increase or decrease, depending on the discount rate
A
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $14 to $16 is
A. -1.37. B. -0.33. C. -1. D. -3.29.
Suppose people become so convinced that interest rates cannot fall further that they hold money rather than bonds. This situation is
A. known as a liquidity trap B. shown by making the aggregate demand curve steeper C. shown as a leftward shift in the investment demand D. known as crowding out
What is the free-rider problem? Why do free riders make the private provision of a public good inefficient?
What will be an ideal response?
The difference between a country's merchandise exports and its merchandise imports is the
A. balance of trade. B. current account. C. capital account. D. balance of payments.