In the $160 to $180 price range in Figure 20.1, the absolute value of the price elasticity of demand is closest to
A. 9.0.
B. 5.7.
C. 0.175.
D. 1.0.
Answer: B
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Refer to the scenario above. Which country has the lowest income per capita?
A) Ritzland B) Techland C) Eduland D) Neoland
Using the money demand and money supply model, an increase in money demand would cause the equilibrium interest rate to
A) increase. B) decrease. C) not change. D) increase, then decrease.
When the domestic money prices of goods are held constant
A) a nominal dollar appreciation makes U.S. goods cheaper compared with foreign goods. B) a nominal dollar depreciation makes U.S. goods less appealing in foreign markets. C) a nominal dollar appreciation does not affect the prices of U.S. goods. D) a nominal dollar depreciation makes U.S. goods more expensive compared with foreign goods. E) a nominal dollar depreciation makes U.S. goods cheaper compared with foreign goods and a nominal dollar appreciation makes U.S. goods more expensive compared with foreign goods.
If a business produces and sells only one unit of a good, its profit would be the
a. price received for the good b. price of the product minus the cost of the resources used to produce the product c. return paid to the firm's bank on its outstanding loans d. price of the product minus the wages paid for the labor used to produce it e. wages paid for the labor used to produce the product minus the price