When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is:
A. 1.5
B. 0.15
C. 0.67
D. 67
A. 1.5
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All of the following accurately describe microlending EXCEPT:
A) it involves small loans B) lending is primarily undertaken by the government C) the borrowers are people who are attempting to start or expand a small business D) many economists think it has aided economic growth in many low-income countries
Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises when Capital per day is on the vertical axis and Labor per day is on
the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
The typical economic life cycle illustrates how people tend to
a. borrow more when they are younger and save more when they are middle-aged. b. earn their peak incomes immediately prior to the typical retirement age of 65. c. adjust their consumption based on changes in their transitory income. d. All of the above are correct.
Liquidity refers to:
A. A company’s cash availability B. A company’s amount of financial leverage C. A company’s ability to meet its debt obligations D. A company’s ability to generate sales from use of its assets E. A company’s operating cycle