The price elasticity of demand is a measure of
A. the demand for a product holding prices constant.
B. the horizontal shift in the demand curve when the price of a good changes.
C. the quantity demanded of a good at a given price.
D. the responsiveness of the quantity demanded of a good to a changes in the price of the good.
Answer: D
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The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that
A) the money market is in equilibrium. B) people buy bonds and the interest rate falls. C) people sell bonds and the interest rate falls. D) bond prices fall and so the interest rate falls.
Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day
If the firm hires the 9th worker, what will happen to the average product of labor? Explain.
Discriminatory trade practices are allowed among sister WTO member countries, especially when it comes to
A) the use of child labor in agricultural and textile/apparel products. B) national security and special benefits given to other members of a free trade area. C) the protection of agriculture and textile/apparel from open trade. D) Both A and B are correct. E) Both B and C are correct.
In which case is total expenditure in an economy NOT equal to total income?
A. if total saving is larger than total investment B. if net exports are not zero C. if inventory investment is negative D. None of the answers is correct—they are always equal.