Price elasticity of demand is defined as
a. slope divided by price.
b. percentage change in price divided by percentage change in quantity demanded.
c. percentage change in quantity demanded divided by percentage change in price.
d. the inverse of the price elasticity of supply.
c
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $14,000?
A) 0.91 B) 1.1 C) 0.09 D) 0.7
The total public debt as a percentage of GDP for the United States in 2011 was in the vicinity of
a. 25 percent. b. 70 percent. c. 90 percent. d. 120 percent.
When the government taxes labor earnings we can expect people to
a. work more so they can keep the same standard of living. b. work less and enjoy more leisure. c. quit their present job and find one that pays better. d. stop working altogether and go on welfare.