Suppose we observe that a firm's total revenue doesn't change when price and quantity change by the same percentage. Which of the following is a possible value of its price elasticity of demand?
A. 0
B. 0.5
C. 1
D. 2
Answer: C
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Economists blame the long lines at gasoline stations in the U.S. in the 1970s on
a. U.S. government regulations pertaining to the price of gasoline. b. the Organization of Petroleum Exporting Countries (OPEC). c. major oil companies operating in the U.S. d. consumers who bought gasoline frequently, even when their cars' gasoline tanks were nearly full.
In an open economy under flexible exchange rates, a reduction in the interest rate will cause a reduction in which of the following?
A) investment B) the exchange rate, E C) net exports D) all of the above E) none of the above
Use the following given market-for-money diagrams to answer the next question.
The total demand for money is shown by
A. D1. B. D2. C. D3. D. S.
Which of the following factors would decrease in the quantity of investment demanded?
A. A decrease in business taxes B. An increase in the rate of technological change C. An increase in the interest rate D. A decrease in the stock of capital goods on hand