In Exhibit 5-9, the price elasticity of supply for good X between points E and C is:
a. 7/5 = 1.40.
b. 1/5 =0.20.
c. 5/7 = 0.71.
d. 1.
c
You might also like to view...
The cyclical deficit is that portion of the deficit
a. that results from the economy being below the natural rate of output. b. that would exist even if the economy were at its natural rate of output. c. is a function of the level of automatic stabilizers. d. both a and c. d. None of the above
Suppose a banking system has $200 million in deposits, a required reserve ratio of 10 percent, and total bank reserves of $35 million. Then the potential increase in deposit creation for the whole banking system is equal to
A. $3 million. B. $0. C. $15 million. D. $150 million.
Which of the following is an example of U.S. foreign portfolio investment?
a. A U.S. legal office opens a branch office in Holland. b. Erica, a U.S. resident, buys bonds issued by the Swiss government. c. Both A and B are examples of U.S. portfolio investment. d. Neither A nor B are examples of U.S. portfolio investment.
The opportunity cost of an activity includes the value of:
A. the least-best alternative that must be foregone. B. the chosen activity minus the value of the next-best alternative. C. the next-best alternative that must be foregone. D. all of the alternatives that must be forgone.