Suppose that the value of the short-run absolute elasticity of demand for a good is 0.9. Then, we know the long-run absolute price elasticity of demand will be
A. less than 0.9.
B. inelastic.
C. greater than 0.9.
D. 0.
Answer: C
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The marginal product of labor is the change in total product from a one-unit increase in
A) the quantity of labor employed, holding the quantity of other inputs constant. B) the quantity of capital employed, holding the quantity of labor constant. C) both the quantity of labor and the quantity of other inputs employed. D) the wage rate.
Imagine two economies that are identical except that, for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $1,500 billion. It follows that
a) the price level, but not real GDP is higher in country B. b) real GDP and the price level are higher in country B. c) real GDP, but not the price level, is higher in country B. d) neither the price level or real GDP is higher in country B.
Use the following graph to answer the next question. Q* = 100 Yen. 
Assume Japan and the United States are engaged in a system of flexible exchange rates. One U.S. dollar will purchase how many Japanese yen?
A. 80 B. 120 C. 140 D. 125
Government expenditures are different from the government national income account (G) in that:
A. government expenditures includes transfer payments while G does not. B. government expenditures are net of tax revenue while G is not. C. G includes transfer payments while government expenditures does not. D. G includes spending for defense, highways, and education while government expenditures does not.