When we move upward and to the left along a linear, downward-sloping demand curve, price elasticity of demand
a. first becomes smaller, then larger.
b. always becomes larger.
c. always becomes smaller.
d. first becomes larger, then smaller.
b
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Assuming coffee and cola are substitutes, if the price of coffee rises
A) there is a movement along the demand curve for cola. B) the demand curve for coffee will shift to the right. C) the demand curve for cola will shift to the right. D) the demand curve for coffee will shift to the left.
In the short run, in a perfectly competitive market, a firm will shut down if
A) P < AVC for all levels of output. B) P < ATC for all levels of output. C) ATC > P > AVC for all levels of output. D) P > AFC for all levels of output.
Which federally funded program provides those who are eligible with a debit card to pay for food?
a. SNAP b. TANF c. EITC d. AFDC
A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets