If the absolute price elasticity of demand is 2.0, a 10 percent decrease in price will increase quantity demanded by
A) 10 percent.
B) 20 percent.
C) 5 percent.
D) 12 percent.
Answer: B
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If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.
The elimination of import restrictions will
A. Alter the mix of output from export industries to import-competing industries. B. Redistribute income from import-competing industries to export industries. C. Redistribute income from domestic to foreign producers. D. Alter the mix of output from export industries toward domestic industries.
An "unemployment spell" is a period during which:
A. an unemployed individual leaves the labor force and then returns. B. the unemployment rate exceeds 15 percent. C. an individual is continuously unemployed. D. the unemployment rate is less than 10 percent.
Between 1950 and 2004, standards of living in the OECD countries
A) did not change at all. B) were converging. C) all increased at the same rate. D) decreased at the same rate. E) decreased, but at different rates.