Suppose an increase in the price of hair dryers leads to an increase in total expenditures on the hair dryers. Which of the following is true for this price change?
a. Hair dryers are an inferior good.
b. The demand for hair dryers is perfectly elastic.
c. The demand for hair dryers is inelastic.
d. The demand for hair dryers is elastic.
C
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 14,000; 8,000 B. 12,000; 10,000 C. 12,000; 8,000 D. 8,000; 14,000
Which of the following would be an example of FDI?
A) A Brazilian investor buys German government bond. B) An American buys a new Swedish car. C) An Italian firm builds a plant in Nebraska. D) A Canadian investor buys a French equity.
If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to make?
a. $75,000 b. $12,000 c. $1,000 d. $30,000 e. $3,000
Suppose that the Department of Transportation is compiling data on traffic accidents and it wants to present the data in the form of an index. If there were 2,000 accidents in the base year, 2007, and 2,100 accidents in 2008, what is the value of the index for 2008?
a. 95.2 b. 100 c. 105 d. 200 e. 210