If the price of a good rises by 10% and the quantity purchased falls by 5%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase
B) inelastic; increase
C) elastic; decrease
D) me and so inelastic; decrease
B
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Due to political instability in a country, there was a sudden decrease in the demand for goods. The unpredicted decrease in demand for goods caused a _____
a. macroeconomic shortage b. macroeconomic surplus c. budget surplus d. depression
Ceteris paribus, if incomes increase faster in the United States than in less developed countries, then the currencies of less developed countries should
A. Depreciate, and the dollar should appreciate. B. Appreciate, and the dollar should depreciate. C. Appreciate, and the dollar should appreciate. D. Depreciate, and the dollar should depreciate.
Which of the following is not an implication of hardwired heuristics?
A. Getting people to make positive behavioral changes is about putting them in situations where heuristics kick in and lead them to the desired outcome. B. Getting people to make better decisions is simply a matter of providing more information and more options. C. People who know and understand hardwired tendencies of others can take advantage of situations. D. Even when confronted with irrefutable information that a behavior is detrimental, people still may not change what they're doing.
Table 16.1Given the data in Table 16.1, if Firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:
A. would increase by $12. B. would decrease by $12. C. would not change. D. cannot be calculated from the information given.