The town of Little Bohemia has an estimated elasticity of demand for land of 2. What effect would there be to the quantity demanded from a 10% decrease in the price of land due to a tax increase?
What will be an ideal response?
The formula for elasticity is
therefore, 2 = - (%?X)/(-10) = 20. Demand would
increase by 20 percent.
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Gross public debt is the amount of funds that
A) U.S. residents owe to foreign residents. B) the federal government owes to all holders of U.S. securities. C) the federal government owes to taxpayers. D) states owe to the federal government.
Which of the following best describes the economic concept of utility?
a. Utility is the total number of units of a commodity that a consumer buys. b. Utility measures usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility. c. Utility measures the satisfaction, or pleasure, that people receive form consuming a good or service. d. Utility measures the purchasing power of individuals.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Who believed that small disturbances in output, prices, or unemployment were likely to be magnified by the invisible hand of the marketplace?
A. Adam Smith. B. John Maynard Keynes. C. Jean-Baptiste Say. D. President Herbert Hoover.