If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasticity of demand is
A) 0.30.
B) 0.60.
C) 0.83.
D) 1.20.
C
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Economic analysis is useful in resolving all of the following types of issues EXCEPT:
A. positive. B. normative. C. monetary policy. D. fiscal policy.
Which of the following is true for a perfectly competitive market in short-run equilibrium?
A. The quantity supplied equals the quantity demanded. B. The typical firm earns zero economic profit. C. The typical firm will always make a positive profit. D. All of these are correct.
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market. B. the demand curve for firms in the market to shift to the right. C. the average cost of production to decrease. D. the average cost of production to increase.
If a country has a current account surplus, it also has
A. an increase in its official reserve assets. B. a financial account surplus. C. an increase in its holding of net foreign assets. D. a balance of payments deficit.