If the absolute price elasticity of demand for a product is less than 1, then
A. consumers are relatively insensitive to price changes.
B. there is a positive relationship between price changes and the quality of the product.
C. consumers are relatively sensitive to price changes.
D. producers are relatively insensitive to price changes.
Answer: A
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You have made an investment of $250 that will yield a profit of $30 in one year. If the interest rate is 11.5% is this a good investment?
A. Yes, because the internal rate of return is greater than the interest rate B. Yes, because the interest rate is greater than the internal rate of return C. No, because the internal rate of return is greater than the interest rate D. No, because the interest rate is greater than the internal rate of return
In which case can we be sure real GDP rises in the short run?
a. foreign economies expand and government purchases rise. b. foreign economies expand and government purchases fall. c. foreign economies contract and government purchases fall. d. foreign economies contract and government purchases rise.
The following simultaneous equations describe the demand and supply for a particular good in a competitive market.
Qi= 
1Pi+ 
1zi1 + ui1
Qi= 2Pi+ 2zi2 + ui2
Which of the following are the endogenous variables in this model?
A. Pi,zi1, and zi2
B. Pi and Qi
C. zi1, and zi2
D. ui1 and ui2
An equation that captures how inputs of production are related to output is called a:
A. GDP deflator. B. consumption function. C. production function. D. saving function