In the figure above, using the midpoint method, what is the price elasticity of demand when the price falls from $8 to $7?
A) 4.0
B) 5.0
C) 0.5
D) 0.4
E) 0.25
B
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A sufficient measure of the effectiveness of government redistribution is to look at the overall level of taxpayer dollars spent on redistributive activities
a. True b. False
When a country is a net borrower from abroad, they will have a(n) _____________ account deficit.
a. current b. trade c. cash d. overall
In early 2010 Molly paid $200,000 for a house built in 2000 . She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?
a. the price of the house, the cost of remodeling materials, the increase in rental value b. the price of the house and the cost of remodeling materials, but not the increase in rental value c. the costs of the remodeling materials and the increase in rent, but not the price of the house d. None of the above are correct.
Over a given period of time, if imports are greater than exports, the result is
A. A trade surplus. B. A trade deficit. C. An embargo. D. A trade war.