When Scuba, Inc, lowered the price of a tank of compressed air by 20 percent, it sold 10 percent more tankfuls. The price elasticity for compressed air is
a. 2.
b. 1/2.
c. 1.
d. 20.
b
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Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are
A) increasing, and real Gross Domestic Product (GDP) will contract. B) increasing, and real Gross Domestic Product (GDP) will expand. C) decreasing, and real Gross Domestic Product (GDP) will expand. D) decreasing, and real Gross Domestic Product (GDP) will contract.
If the consumption of a good decreases the quantity available for another person, the good is
A) rival. B) excludable. C) pure. D) free.
Which of the following is not an intermediate good?
A. Beef purchased by McDonald's to make a Big Mac. B. Tomatoes used by Ortega to make their salsa. C. Tires purchased by Ford to put on their new Explorers. D. Tires sold by Goodyear to put on your Explorer.
Ceteris paribus is the same as rise / run.
Answer the following statement true (T) or false (F)