In 2005 Hurricane Katrina hit the Gulf Coast and especially the city of New Orleans. Most oil production off the Gulf Coast came to a halt. If the impact of this was to reduce oil production by 10% and the Eo for oil was -0.2, what was the likely % change in oil prices as a result?
a) +10%
b) +2%
c) +5%
d) +50%
e) +20%
d) +50%
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Relative to GDP, interest on the national debt
a. has grown at a steady rate during the last 40 years b. has remained constant in recent decades c. grew especially rapidly during the 1980s d. declined slightly during the 1980s e. fluctuates as retirement portfolios change their allocation of government securities
Which of the following does not affect an individual's demand curve?
a. expectations b. income c. prices of related goods d. the number of buyers
A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is
A. perfectly elastic demand. B. perfectly elastic supply. C. perfectly inelastic demand. D. perfectly inelastic supply.
The elasticity of savings with respect to interest rates is the percentage change in the quantity of savings divided by the percentage change in interest rates.
Select whether the statement is true or false. A. True B. False