The elasticity coefficients of demand are 2.6, 0.5, 1.4, and 0.18 for demand schedules D1, D2, D3, and D4, respectively. A 2 percent price increase will result in an increase in total revenues in the cases of:
A. D1 and D3.
B. D2 and D4.
C. D1, D2, and D3.
D. D1 and D4.
Answer: B
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Which of the following statements is true of the U.S. economy in the last 200 years?
A) The growth rate of GDP has been more than 10% per year. B) The GDP per capita has decreased. C) The GDP per capita has increased. D) There has been no contraction in the economy.
Suppose you purchased 500 shares of stock in 2013 for $15 a share, and the price now is $20 a share. If you sell the stock, then your capital gain is
A) $2500. B) $1000. C) $10000. D) indeterminate without knowing the inflation rate.
Which statement represents most correctly the relationship between nominal GDP and real GDP?
a. Nominal GDP measures base-year production using base-year prices, whereas real GDP measures current production using current prices. b. Nominal GDP measures current production using base-year prices, whereas real GDP measures current production using current prices. c. Nominal GDP measures current production using current prices, whereas real GDP measures current production using base-year prices. d. Nominal GDP measures current production using current prices, whereas real GDP measures base-year production using base-year prices.
Federal Reserve Notes held by the Fed are considered part of the
A) money supply. B) bank reserves. C) both of the above D) none of the above