Suppose that the price of eggs increases from 75 cents to $1.00 per dozen and as a result a typical farmer experiences a decrease in egg sales from 300 to 200 dozen per week. Using the method of average values, the absolute price elasticity of demand is
A. 1.4.
B. 1.75.
C. 0.8.
D. 3.0.
Answer: A
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An increase in the U.S. demand for imports will ________ the supply of dollars and lead the dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
The above table gives the market demand and market supply schedules for soda. There are no external benefits or external costs. What is the efficient quantity of soda?
A) 1400 B) 1000 C) 600 D) It is impossible to determine the efficient quantity without more information.
Lump sum grants are sometimes referred to as categorical grants.
A. True B. False C. Uncertain
The measure of production that values output using base-year prices is called
A) underground GDP. B) nominal GDP. C) real GDP. D) value-added GDP.