If the price of a good rises by 10% and the total amount consumers spend on the good remains the same, then the good is
A. perfectly inelastic.
B. unit elastic.
C. inelastic.
D. elastic.
Answer: B
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A unit of account is
A) a bank account. B) a savings account. C) a common measurement in which values are expressed. D) the same as a medium of exchange. E) none of the above
Which of the following is not an example of price discrimination?
A. student discounts at museums B. mattress sales on Memorial Day C. rental car companies charging lower prices to local residents than to out-of-state residents D. children's discounts at amusement parks
Which of the following allows an economist to conclude that the welfare or happiness of society as a whole is clearly increasing?
A) A decrease in nominal GDP B) A decrease in real GDP C) An increase in nominal GDP D) An increase in real GDP E) None of the above.
How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 2.00 dollars per British pound?
A) 22.5 British pounds B) 32.5 British pounds C) 12.5 British pounds D) 40 British pounds E) 30 British pounds