Suppose the price of crude oil drops from $150 a barrel to $120 a barrel. The quantity bought remains unchanged at 100 barrels. The coefficient of price elasticity of demand in this example would be
A) -0.5.
B) infinity.
C) -1.0.
D) 0.
D
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Which of the following statements correctly identifies a reason why inflation can be used as a countercyclical policy tool?
A) Inflation sometimes increases the demand for workers that increases output and helps combat slowdowns. B) Inflation reduces money costs and hence stimulates an economy during slowdowns. C) Inflation increases consumer demand which is necessary for combating slowdowns. D) Inflation increases consumer confidence, which is an absolute necessity to counter act business cycles.
When the economy experiences inflation, people demand a:
A. higher quantity of money, shifting the money demand curve leftward. B. lower quantity of money, shifting the money demand curve rightward. C. higher quantity of money, shifting the money demand curve rightward. D. lower quantity of money, shifting the money demand curve leftward.
Which of the following will be included as a unilateral transfer in the balance of payments account of a country?
a. Transportation costs involved in traveling from a foreign country to the domestic country b. A foreign worker in the domestic country sending money to his home country c. Compensation earned by foreign workers in the domestic country d. Royalties paid to residents working in a foreign country e. Income paid on foreign-owned investments in the domestic country
Each of these statements is true except
A. Female-headed black families with children under 18 have a poverty rate of almost 47%. B. Female-headed white families with children under 18 have a poverty rate of almost 35%. C. All families receiving public assistance are poor. D. All poor families receive public assistance.