Suppose the quantity demanded of milk increases by 15% when milk prices are decreased by 3%. The price elasticity of demand for milk is
A) elastic and equal to 0.2.
B) inelastic and equal to 0.2.
C) elastic and equal to 5.
D) inelastic and equal to 5.
C
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Suppose India wants to measure how much the standard of living has changed over the last decade. Which piece of data should India use?
A) population B) real GDP per person C) real GDP D) wages E) inflation
The Fed sells $300 million U.S. government securities to commercial banks. This action leads to ________ in Fed assets and ________ in Fed liabilities
A) a $300 million increase; a $300 million increase B) a $300 million increase; a $300 million decrease C) no change; no change D) a $300 million decrease; a $300 million decrease in E) a $300 million decrease; a $300 million increase
Compared to perfect competition, a monopoly usually does not result in
a. higher prices. b. the use of fewer resources. c. a less elastic demand curve. d. less profit.
The most fundamental concepts underlying the discipline of economics are:
a. scarcity and choice. b. supply and demand. c. money, stocks, and bonds. d. inflation and unemployment.