Refer to the accompanying figure. At P = 4, how does the price elasticity of demand for D1 compare to that for D2?
A. It will be greater for D1 than for D2.
B. The price elasticity of demand for both D1 and D2 will be greater than one.
C. It will be lower for D1 than D2.
D. It will be equal for D1 and D2.
Answer: C
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Answer the next question on the basis of the following national income data for the economy. All figures are in billions of dollars.Personal consumption expenditures$400Government purchases128Gross private domestic investment88Net exports7Net foreign factor income0Consumption of fixed capital43Taxes on production and imports50Compensation of employees369Rents12Interest15Proprietors' income52Corporate income taxes36Dividends24Undistributed corporate profits22Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $623 B. $609 C. $592 D. $584
After constructing a new factory, the cost of building the factory is a
A) past cost. B) sunk cost. C) variable cost. D) None of the above answers are correct.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by
A) 15 units. B) 25 units. C) 35 units. D) 50 units.
The problem arising in the used car market can be alleviated by
A. providing buyers with more complete information on the condition of a used car. B. sellers offering warranties. C. having third parties certify the condition of a used car. D. All of these statements are true.