The price elasticity of demand is a measure of the:
A. absolute changes in quantity demanded and price.
B. responsiveness of quantity demanded to a change in price.
C. steepness or slope of a demand curve.
D. sensitivity of the quantity demanded for one good to a change in the price of another good.
Answer: B
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Refer to the table above. If Jack has an annual income of $40,000, into which tax bracket does he fall?
A) 10% B) 15% C) 23% D) 30%
When Jack's income increases by $5,000, he spends an additional $4,000 dollars. This implies that his marginal propensity to consume is 1.25
Indicate whether the statement is true or false
Refer to Figure 10.7. A movement from point D to point C could be caused by
A) a positive demand shock. B) an increase in the term premium investors expect in the future. C) an increase in the term structure effect. D) an increase in the expected rate of inflation.
The U.S. demand curve for foreign currency is drawn holding constant all except one of the following factors. Which is the exception?
a. income in the United States b. the inflation rate in the United States c. incomes in the rest of the world d. the interest rate in the United States relative to the rest of the world e. tastes and preferences of Americans for foreign goods