Suppose that the quantity of pizza demanded decreased by 15 percent after an increase in price of 10 percent. What is the price elasticity of demand for pizza?
A) 1.50
B) 0.67
C) -1.50
D) -0.67
A
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Which of the following is TRUE when a budget deficit exists?
A) Dissaving exists. B) Tax revenues exceed government expenditures. C) A trade surplus exists. D) Government expenditures exceed tax revenues.
In the simple circular flow model, if planned I exceeds planned S, then
a. the economy is not at equilibrium. b. the size of the circular flow is increasing. c. if the economy is at full employment, then prices will rise. d. All of these.
The multiplier effect refers to the fact that a change in spending (aggregate demand) will
What will be an ideal response?
If there is an inverse relationship between two variables, the graph relating the two variables will be:
A. horizontal. B. upward-sloping. C. vertical. D. downward-sloping.