In the article on China holding $4 trillion in dollars, for every dollar it holds in reserves, it prints
A. 6.5 fewer yuan for the domestic money supply.
B. 10 additional yuan for the domestic money supply.
C. 10 fewer yuan for the domestic money supply.
D. 6.5 additional yuan for the domestic money supply.
Answer: D
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If the cross-price elasticity of demand for a good is estimated at -3.9, estimate the percentage change in quantity demanded of the good when the price of the related good increases from $30 per unit to $75 per unit
Also, if it is known that the income elasticity of demand for the same good is 2.5, estimate the percentage change in demand if consumer income increases from $100 to $300.
A rationale used for tariff protection by some is that
A) the country wants to practice international price discrimination. B) the country finds its cost of producing their products higher than in other countries. C) imports are produced by firms that received subsidies from their governments. D) imports are produced by firms that are more efficient than domestic producers are.
Which of the following will become smaller and smaller as the firm expands output?
a. average total cost b. average fixed cost c. marginal cost d. total fixed cost
Which of the following demonstrates the law of supply?
a. When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts. b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When ketchup prices rose, ketchup sellers decreased their quantity supplied of ketchup.