If a one percent change in the price of oil causes a 0.02 percent change in the quantity demanded of oil, then 0.02 is the
A. price elasticity of demand.
B. price elasticity of supply.
C. cross-price elasticity of demand.
D. income elasticity of demand.
A. price elasticity of demand.
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In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $6 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded. B) less than 3 million a month and will exceed the quantity demanded. C) less than 3 million a month and will be less than the quantity demanded. D) more than 3 million a month and will exceed the quantity demanded.
China has a ______ exchange rate with the United States, while Japan's exchange rate with the U.S. is determined by ____________.
Fill in the blank(s) with the appropriate word(s).
Mutually beneficial trade will occur between two countries for all of the following reasons except one. Which is the exception?
a. The opportunity costs of producing two goods differs between the two trading partners. b. One country is more productive than the other. c. One country is more efficient than the other. d. One country has an absolute advantage over the other. e. Each country has a comparative advantage in producing some good.
Keynes argued that aggregate demand is
a. stable, because the economy tends to return to its long-run equilibrium quickly after any disturbance to aggregate demand. b. stable, because changes in consumption are mostly offset by changes in investment and vice versa. c. unstable, because waves of pessimism and optimism create fluctuations in aggregate demand. d. unstable, because of long and variable policy lags that worsen economic fluctuations.