Using the midpoint method, the price elasticity of demand for a good is computed to be approximately 0.75 . Which of the following events is consistent with a 10 percent decrease in the quantity of the good demanded?
a. a 7.5 increase in the price of the good
b. a 13.33 percent increase in the price of the good
c. an increase in the price of the good from $7.50 to $10
d. an increase in the price of the good from $10 to $17.50
b
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Which of the following policies would not help promote economic growth?
A) a law restricting elected officials from accepting expensive gifts and trips from private individuals B) a law that subsidizes research in nanotechnology C) a law that funds prenatal care for all expectant mothers D) a law requiring that the funds in an individual retirement account be taxed
The kinked demand curve is an explanation of sticky prices.
Answer the following statement true (T) or false (F)
Which of the following is most important for the achievement of higher income levels and living standards?
a. an increase in total employment b. increases in government spending that create jobs c. production of additional goods and services that people value highly relative to the cost of their production d. restriction of imports that expand employment in the protected industries
The productivity slowdown in the United States can be explained by the use of social media, many are used for personal enjoyment rather than industrial productivity.
Answer the following statement true (T) or false (F)