If a 10 percent change in the price of a good caused a 10 percent change in the quantity demanded of the good, we would say that over this range of prices the good has a(n)
A) elastic demand.
B) inelastic demand.
C) perfectly elastic demand.
D) unit elasticity of demand.
Answer: D
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In effect, tariffs on imports are
A. subsidies for foreign producers. B. subsidies for domestic producers. C. subsidies for domestic consumers. D. special taxes on domestic producers.
Distinguish between a voluntary export restraint and a quota
What will be an ideal response?
The President's statement that "to encourage economic growth, taxes should be cut"
A) would be an example of a normative statement. B) would be an example of a positive statement. C) would be an example of a microeconomic statement. D) would be a statement of mercantilist economic philosophy.
You borrow $75,000 at an interest rate of 3% to open Spinners, a bicycle shop. You will earn an economic profit if the return on your investment is
A. 6% or less. B. between 0 and 3%. C. greater than 3%. D. 3%.