Suppose that the own-price elasticity for Ragu spaghetti sauce is -1.25. Which of the following is (are) true?
A) The demand for Ragu spaghetti sauce is unitary elastic.
B) A 10% decrease in price leads to an 8% increase in quantity demanded.
C) A 4% increase in price leads to a 5% decrease in quantity demanded.
D) None of the above.
Answer: C
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The aggregate demand curve gives the
A) planned purchase rates for all goods and services in the economy at various price levels. B) demand for goods and services by the government at various price levels. C) amount of all goods everyone wants to buy at various income levels. D) planned purchases for all goods and services in the economy, holding other things such as the price level constant.
A form of business whose profits are taxed twice is
A) a proprietorship. B) a partnership. C) a corporation. D) either a proprietorship or a partnership, depending on other information.
Writing in The Wall Street Journal in 2009, economist Jeremy Siegel pointed out that the efficient markets hypothesis
a. was responsible for the financial crisis of 2008-2009. b. was responsible for the Great Depression of the 1930s. c. claims that prices observed in financial markets are always "right.". d. claims that prices observed in financial markets are mostly "wrong.".
A decrease in the price of coffee, other things being equal, causes a(n):
A. leftward shift in the demand curve for coffee. B. downward movement along the demand curve for coffee. C. rightward shift in the demand curve for coffee. D. upward movement along the demand curve for coffee.