Suppose you are the manager of a local water company, and you are instructed to get consumers to reduce their water consumption by 10 percent. If the price elasticity of demand for water is 0.25, by how much would you have to raise the price of water?
a. 10 percent
b. 25 percent
c. 40 percent
d. 100 percent
c
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Use the following graph to answer the next question. 
The economy is at equilibrium at point B. What would expansionary fiscal policy do?
A. Move the economy from point B towards point C. B. Move the economy from point B towards point A. C. Move the economy from point B downward along AD2. D. Move the economy from point B upward along AD2.
Adjusted for risk, interest rate parity
A) holds only for larger countries. B) holds only between the U.S. and Canada. C) holds only when purchasing parity holds. D) always holds.
Because of assortative mating, wealth becomes ________ and the distribution of wealth becomes more ________
A) more concentrated in a small number of families; equal B) more concentrated in a small number of families; unequal C) spread out among more families; equal D) spread out among more families; unequal
A decrease in the supply of dollars to holders of Mexican pesos would cause the:
a. equilibrium quantity of dollars to decrease. b. equilibrium quantity of dollars to increase. c. equilibrium quantity to remain unchanged. d. all of these.