You observed last week that the price of organic tomatoes in Ames was $4 per pound and that the total quantity of organic tomatoes consumed in Ames was 50 pounds. This week, you observe the price of organic tomatoes increased to $5 per pound and consumption decreased to 30 pounds. What is the elasticity of demand for organic tomatoes?
A. -2
B. -1.6
C. -1
D. -0.625
Ans: B. -1.6
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If the United States imposes a tariff on a good, then
A) domestic consumption of the good decreases. B) foreign production of the good increases. C) the government makes less revenue than it would have gained if it imposed a quota. D) foreign consumption of the good decreases. E) domestic production of the good decreases.
A scatter plot:
A) is the same as a pie chart. B) shows how a variable changes across time. C) shows the relationship between two variables at a point in time. D) represents the frequency of a variable being observed.
Common American re-exports of the Napoleonic War period included all of the following except:
a. cotton. b. sugar. c. coffee. d. spices.
Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage
a. True b. False Indicate whether the statement is true or false