Compute the approximate elasticity of demand from the following data: PriceQuantityInitial situation$2311.5New situation2013.5
A. 1.15.
B. 1.5.
C. 5.0.
D. .87.
Answer: A
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Game theory is not useful in understanding perfect competition because in a perfectly competitive market:
A. there are too many firms to be able to model their behavior accurately using game theory. B. the payoffs to firms' choices are unknown. C. each firm only cares about its own profit, so there is no interdependence. D. no single firm can influence the market price, so firms' decisions are not interdependent.
Gross federal debt held by the public is equal to
A) total gross federal debt. B) the federal debt held by the Fed minus the federal debt held by other countries. C) the federal debt held by other countries plus the federal debt held by private investors. D) the federal debt held by the Fed plus the federal debt held by private investors.
There is no relationship between the price level and which component of GDP?
A. C B. NX C. G D. I
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2?
A. an increase in the price of fertilizer B. a change in consumer tastes away from wheat bread C. the development of a more effective insecticide against cutworms D. a decrease in consumer incomes, assuming wheat is a normal good