If the price of oil goes up by 50% and the quantity demanded goes down by 25%, the absolute value of the price elasticity of demand is
A) 0.25.
B) 0.50.
C) 0.75.
D) 1.00.
B
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Scarcity refers to the situation in which
A) unlimited wants exceed limited resources. B) a country's population is larger than its resource base. C) a nation's poverty level increases faster than its population. D) unlimited resources exceed limited wants.
One important reason why the U.S. government is not likely to go bankrupt even with a large public debt is that it has:
A. the ability to refinance debt as it comes due by selling new bonds. B. the ability to decrease interest rates and increase investment spending. C. s strong military to protect it from creditors. D. the capacity to pay off its outstanding debt with gold.
What does internalizing an externality refer to?
a) making certain government does not disrupt the internal workings of the market b) making buyers pay the full price for the products they purchase c) making certain that all market transaction benefits go to only buyers and sellers d) making buyers and sellers take into account the external effects of their actions
Tisa owns a company that needs a foundation dug in the ground in order to build a new office. In which of the following situations would it make sense for her to use labor-intensive methods to complete the job?
a. She needs the project done within 24 hours. b. She is in a developed country with lots of machinery. c. She is in a developing country with very low wages. d. She is in a mixed economy with little government involvement.