Suppose that the percentage change in supply is 50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent.
B. increase by 55 percent.
C. increase by 10 percent.
D. decrease by 55 percent.
Answer: A
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The vicious circle of poverty refers to the fact that in LDCs,
a. low living standards lead to declines in population growth b. consumption goods are preferred to capital goods c. people are poor because land is scarce d. there are too many older people e. poverty leads to low investment in capital goods
An open peg might be an option for some nations that desire to:
A) close off capital inflows and outflows and fix currency rates. B) allow the free flow of capital and fix currency rates. C) allow the free flow of capital with flexible currency rates. D) close off capital inflows and outflows with flexible currency rates.
What are the seven functions of the Federal Reserve System? Which one is most important?
What will be an ideal response?
An increase in the price of labor (a variable resource) shifts
A) all cost curves upward.
B) the variable cost curves upward but leaves the fixed cost curves unchanged.
C) the fixed cost curves upward but leaves the variable cost curves unchanged.
D) the marginal cost curve rightward.
E) none of the cost curves.