If the price of a good increases by 10 percent, its quantity demanded drops by 50 percent. The price elasticity of demand is:
A. 1.0
B. 0.2
C. 5.0
D. 2.0
C. 5.0
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is greater than one:
A) retailers in the U.S. should buy the toys from Chinese suppliers. B) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
Figure 10-9
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Figure 10-9 illustrates a period of
A. economic growth and high inflation. B. economic growth and low inflation. C. economic recession and high inflation. D. economic recession and low inflation.
In November 2012, HP claimed that they had weak earnings due to questionable accounting by a company that they had taken over. This is an example of:
A) market risk B) systemic risk C) idiosyncratic risk D) liquidity risk