Recall the Application regarding the elasticity of demand for public transit varying over time to answer the following question(s).According to the Application, the demand for public transit is in the short run is ________, so a 10 percent increase in the transit fare will decrease ridership by ________.
A. 0.40; 4 percent
B. 0.60; 6 percent
C. 0.50; 5 percent
D. 0.7; 7 percent
Answer: A
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If national real GDP grows at twice the rate of population growth,
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The J-curve effect that results from currency depreciation results is due to
A) the initial effect having positive effects on the current account balance. B) the value of imports increasing by more than the value of exports at the time of devaluation. C) exports and imports being totally unresponsive to changes in exchange rates. D) decreases in the dollar price of imports.
The portion of a corporation's profits that a firm pays out each period to its shareholders is a
A. capital gain. B. dividend. C. promissory note. D. corporate bond.