If the price of food falls by 10 percent and the quantity sold increases by 5 percent, then the price elasticity of demand in that range equals
a. 2, and demand is elastic
b. 0.5, and demand is elastic
c. 2, and demand is inelastic
d. 0.5, and demand is inelastic
e. 15, and demand is elastic
D
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A(n) ________ shows the bundles of two goods that provide an equal level of satisfaction to the consumer
A) budget set B) indifference curve C) demand curve D) budget line
If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you value more. e. the difference in the prices of the three options.
Which of the following would shift the short-run Phillips curve to the right?
a. an negative supply shock b. an increase in inflationary expectations c. a decrease in inflationary expectations d. either (a) or (b)
The ______ is a method of calculating GDP by adding how much market participants spend on final goods and services over a specific period of time.
a. investment approach b. value-added approach c. production approach d. expenditure approach