Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:
A. elastic.
B. perfectly inelastic.
C. unit elastic.
D. inelastic.
Answer: C
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Explain the relationship between the real interest rate and investment demand. Compare that relationship to the relationship between expected profit and investment demand
What will be an ideal response?
When a firm's demand curve is tangent to its average total cost curve: a. the firm must be operating in a monopolistically competitive market. b. economic profits are zero
c. the firm must be earning economic profits. d. the firm must be incurring economic losses.
In 2008, the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy. Of those surveyed,
a. 57 percent said free international trade helped the economy. b. 26 percent said free international trade helped the economy. c. 30 percent said free international trade hurt the economy. d. 16 percent said free international trade hurt the economy.
The public debt is the:
a. Difference between current government expenditures and revenues b. Total of all past deficits minus all past surpluses c. Ratio of all past deficits to all past surpluses d. Amount of U.S. paper currency in circulation