If the value of the price elasticity of demand is 0.2, this means that:
A. a 20 percent decrease in price causes a 1 percent increase in quantity demanded.
B. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded.
C. a 5 percent decrease in price causes a 1 percent increase in quantity demanded.
D. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded.
Answer: C
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What are the four categories used to group spending for the expenditure approach?
a. depreciation, investment, government purchases, net imports b. consumption, investment, government purchases, net exports c. depreciation, investment, taxes, net imports d. consumption, investment, taxes, net exports
Market structure is determined by the
A. Price charged for the good or service produced. B. Amount of compensation given to the CEOs. C. Annual revenue, costs, and profits for an industry. D. Number and relative size of the firms in an industry.
The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
At a world price of $160 per bushel, the country produced ________ bushels of wheat and exported ________ bushels of wheat.
A. 120; 80 B. 60; 120 C. 120; 60 D. 150; 120
Refer to the table. An increase in net exports of $10 would:
A. increase real GDP by $10.
B. increase real GDP by $30.
C. decrease real GDP by $10.
D. decrease real GDP by $30.