Suppose the price of apples decreases from $1.00 to $0.80 each and, as a result, the quantity of apples demanded increases from 800 to 1,000 . Using the midpoint method, the price elasticity of demand for apples in the given price range is
a. 0.22.
b. 0.5.
c. 1.0.
d. 4.5.
c
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The larger the number of bidders in an open outcry Dutch auction, ________
A) the lower is the maximum willingness to pay of each bidder B) the smaller is the consumer surplus earned by the winner C) the larger is the quantity offered by the auctioneer for auction D) the lower is the value of the starting bid
Which type of occupation earned the lowest average wage in 2016?
A) management B) legal C) business and finance D) sales E) food preparation and serving
Most economists argue that an effective monetary policy would
a. create money faster during recessions and more slowly during booms. b. create money faster all the time. c. create money more slowly all the time. d. create money faster during booms and more slowly during recessions. e. create money slowly during booms and not at all during recessions.
Refer to Figure 10.3. If full-employment GDP is $600 billion and the economy is on AD1,
A. An inflationary gap exists, and AD must increase by more than $100 billion to eliminate it. B. A recessionary gap exists, and AD must increase by less than $100 billion to eliminate it. C. A recessionary gap exists, and AD must increase by more than $100 billion to eliminate it. D. An inflationary gap exists, and AD must increase by $100 billion to eliminate it.