Assume that the price elasticity of demand for gasoline is -0.06. If the government tax causes the price of gasoline to increase by 50 percent, what will be the decrease in the quantity of gasoline demanded?
A) 0.5 percent
B) 3.0 percent
C) 8.33 percent
D) 50 percent
B
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Refer to the scenario above. Net exports of Lawland equal:
A) $680 billion. B) -$180 billion. C) -$210 billion. D) $1,820 billion.
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. In this example, what signal do potential homeowners give to indicate they are low-risk?
A) indicating high income B) buying an expensive home C) having a large down payment D) buying an inexpensive home
A reduction in the real interest rate will increase investment spending, other things equal, because firms will make an investment purchase if the expected return is
What will be an ideal response?
A COLA is
A. a cost of living adjustment. B. a contract on long-term assets. C. a crisis of labor analysis. D. a center of labor activity.