The price elasticity of demand for widgets is -0.80. Assuming no change in the demand curve for widgets, a 16% increase in sales implies a _______ reduction in price.
A. 40%
B. 1%
C. 12%
D. 20%
Answer: D
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When a person lobbies Congress to grant the person the exclusive right to sell a particular good, such lobbying activity is called
A) rent seeking. B) revenue abatement. C) profit recovery. D) revenue seeking.
Which of the following would least likely? be, for the typical? student, the opportunity cost of attending a class at? 11:00 a.m.?
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
An oil company has the opportunity to extract oil from a reserve in three years with a per barrel profit of $70 per barrel. The current market rate of interest is 4 percent. The present value of this future extraction is about:
A. $55 B. $62 C. $70 D. $72