Ans: d. Elastic
Total revenue falls as the price of a good increases if price elasticity of demand is
a. Perfectly elastic
b. Inelastic
c. Unitary elastic
d. Elastic
Economics
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Suppose there are only two goods: bread and wine. In Mexico, the absolute price of wine is 30 pesos per bottle. If the relative price of wine in terms of bread is 5 loaves per bottle, then the absolute price of bread is
a. 5 pesos per loaf. b. 6 pesos per loaf. c. 25 pesos per loaf. d. 150 pesos per loaf.
Economics
Using the data in the above table, if potential GDP for this economy is $25 billion, then at the present moment real GDP is
A) less than potential GDP. B) equal to potential GDP. C) greater than potential GDP. D) at the full-employment level of output. E) not comparable to potential GDP.
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Game theory would classify a cartel under the topic of
A) zero-sum games. B) cooperative games. C) noncooperative games. D) dominant-strategy games.
Economics
If the British pound (£) appreciates by 10% against the dollar:
a. both the US importers from Britain and US exporters to Britain will be helped by the appreciating pound. b. the US exporters will find it harder to sell to foreign customers in Britain. c. the US importer of British goods will tend to find that their cost of goods rises, hurting its bottom line. d. both US importers of British goods and exporters to Britain will be unaffected by changes in foreign exchange rates. e. all of the above.
Economics