If the percentage change in price is 20 and the percentage change in quantity supplied is 10, supply is:
A. unaffected by price changes.
B. inelastic.
C. unit elastic.
D. elastic.
Answer: B
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"New forms" of foreign investment do not include
a. management contracts b. joint ventures c. licensing d. investment insurance e. all of the above are new forms of foreign investment
An outward shift of an economy's production possibilities curve is caused by:
a. an increase in capital. b. an increase in labor. c. an advance in technology. d. all of these.
Keynes believed
A. once a recession began, it would always turn into a depression. B. full employment GDP was a rare occurrence. C. the expected profit rate and the interest rate were equally important in determining the level of investment in an economy. D. inflation was a persistent tendency of the economies of his day.
Use the above figure. When the price increases from $2 to $10, the absolute price elasticity of demand is
A. 1.50. B. 0.67. C. 1.00. D. 0.25.