If the demand for cell phone service is inelastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).
B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value).
C) the percentage change in quantity demanded is equal to the percentage change in price.
D) the quantity demanded does not change in response to changes in price.
B
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Pegging a country's exchange rate to the dollar can be advantageous if
A) investors believe the dollar to be more stable than the domestic country's currency. B) a country wishes to conduct independent monetary policy. C) imports are not a significant fraction of the goods the country's consumers buy. D) the country does not trade much with the United States.
The relationship between MC and AC can best be described as
A) when AC increases, MC starts to increase. B) when MC increases, AC starts to increase. C) when MC decreases, AC decreases. D) when MC exceeds AC, AC increases.
In economic terms, interest is the payment for
A) current command over resources. B) producers' goods. C) stocks. D) both consumer and capital goods.
You are reading a newspaper article that refers to expansions and contractions in the economy. The references are to changes in
a. wage rates b. inflation rates c. movements in exchange rates d. real GDP e. investment expectations