Refer to the graph above. Over the $5-$6 range, the elasticity of supply using the midpoints formula is:
A. 0.88.
B. 1.22.
C. 1.00.
D. 0.22.
Answer: B
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A market exchange rate which has been adjusted for inflation is called a
A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.
Easy monetary policy and tight fiscal policy lead to
A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
Of the following products, which is most standardized?
a. pizza b. concrete c. automobiles d. clothing e. paintings
When a person's income rises and the tax rate is constant, the tax is a
a. regressive tax b. poll tax c. progressive tax d. head tax e. proportional tax