The price elasticity of demand is defined as the:
A. Percentage change in quantity demanded times the percentage change in price.
B. Unit change in price divided by the unit change in quantity demanded.
C. Percentage change in quantity demanded divided by the percentage change in price.
D. Unit change in quantity demanded times the unit change in price.
Ans: C. Percentage change in quantity demanded divided by the percentage change in price.
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Which of the following is a true statement about the multiplier?
a. The multiplier rises as the MPC rises. b. The smaller the MPC, the larger the multiplier. c. The multiplier is a value between zero and one. d. The multiplier effect does not occur when autonomous expenditure decreases.
Suppose workers in Freecia can produce two bushels of rice with the same amount of effort it takes them to produce one memory chip. Workers in Warmia can produce five bushels of rice with the same effort it takes them to produce two memory chips. Which of the following must be true?
A. Warmia has an absolute advantage in producing memory chips. B. Freecia has a comparative advantage in producing memory chips. C. Warmia has a comparative advantage in producing memory chips. D. Freecia has an absolute advantage in producing memory chips.
Federal Reserve notes are
A. both an asset and a liability to the Federal Reserve System. B. a liability of the Federal Reserve System. C. a liability to the United States Treasury. D. an asset to the Federal Reserve System.
Of the different types of businesses, a corporation has the ________ government rules and the ________ government regulations affecting it
A) least; least B) least; most C) most; least D) most; most