The elasticity of supply for a product will be 2 if:
A. A 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied
B. A 2 percent decrease in price causes a 1 percent decrease in quantity supplied
C. A 1 percent decrease in price causes a 2 percent decrease in quantity supplied
D. A 2 percent decrease in price causes a 2 percent decrease in quantity supplied
C. A 1 percent decrease in price causes a 2 percent decrease in quantity supplied
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Your authors argue that unsustainable booms, followed by recessionary busts, are primarily caused by the Fed's expansionary monetary policies. Which of the following serves as an exception to their claim?
A) The Great Depression of the 1930s B) The Great Recession of the late 2000s C) The authors admit that both of the above are exceptions. D) The authors argue that neither of the above are exceptions, but rather strong examples.
Which of the following is true concerning unilateral transfers in the U.S. balance of payments?
a. Unilateral transfers have been positive since World War II. b. Unilateral transfers have been negative since World War II. c. Unilateral transfers have been negative every year since World War II except during the war in Iraq. d. The United States places tight restrictions on moneys being sent out of the country. e. Developing countries ordinarily place no restrictions on moneys being sent out of their countries.
Economists Fryer and Loury argued that affirmative action
A. can increase minorities' prospective return on any investment in their own education. B. necessarily undermines minorities' incentive to invest in their own education. C. is the reason so many white males are passed over for promotion in favor of minorities. D. "color-blind" proxies for race easily achieve diversity without reference to race itself.
A temporary decrease in government purchases causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall