The price elasticity of demand for electricity is -0.40. By how much must the price of the electricity decrease in order for sales to rise by 12%?
a. 3%.
b. 4.8%.
c. 12.4%.
d. 30%.
d. 30%.
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Refer to Figure 16.1. An increase in expected output in the future is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
Which of the following statements is true about the Canadian health care system?
a. Many Canadians travel to the U.S. in order to receive expensive treatments. b. Canadians have the option of purchasing private health insurance if they can afford it. c. Canadian physicians are salaries employees of the provincial health plans. d. Canadian hospitals have significant excess capacity that is used to treat patients from foreign countries. e. Canadian physicians are allowed to "balance bill" patients for certain high-cost procedures.
The quantity of savings that people are willing to supply will depend on:
A. the price they will receive. B. the amount they have left over after consumption. C. their disposable income. D. their age, since people tend to stop saving once they retire.
The Keynesian perspective on the effect of an increase in taxes is that this policy action
A. generates reductions in consumption and an increase in saving to pay for the new taxes. B. increases current consumption and reduces future consumption. C. generates reductions in consumption and in saving. D. has no impact on consumption.