Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit then consumers' expenditure on X is
A. $50.
B. $25.
C. $5.
D. cannot be determined from the information contained in the question.
Answer: A
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A country can gain by importing a good from abroad even if that good can be produced more efficiently at home. Is this statement true?
What will be an ideal response?
Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was
A) 20 percent. B) 2 percent. C) 16.6 percent. D) 1.6 percent.
If a Central Bank wished to increase the supply of money it should
(a) Raise the reserve requirement. (b) Raise the rate of discount. (c) Buy government bonds in the money market. (d) Do any or all of the above.
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in three years?
A) $155,000 B) $115,000 C) $120,000 D) $133,000