The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy is open to trade, and the world price of a car is $6,000, how many cars will be imported?
A. 3,000
B. 2,000
C. 4,000
D. 6,000
Answer: D
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Earliest records of management (who does what) are found on the walls of cave dwellings in:
a. Siberia b. Rome c. Western Europe, most notably France d. Nigeria
If a good is inferior in an economic sense, income elasticity will:
a. be less than one. b. exceed one. c. be zero. d. be inelastic. e. be negative.
Empirical research has shown that:
A. during the 1980s and 1990s, the velocity of money actually decreased as the opportunity cost of holding money increased. B. in the 1990s and 2000s, velocity was less sensitive to an increase in the opportunity cost of holding money than in the 1980s. C. in the 1990s and 2000s, velocity was more sensitive to an increase in the opportunity cost of holding money than in the 1980s. D. during the 1980s and 1990s, the velocity of money was not sensitive to changes in the opportunity cost of holding money.
Which of the following comparisons is true regarding price elasticity of demand?
A. The demand for monthly car payments is less elastic than the demand for a monthly gym membership because the car payments require a greater share of the consumer's income. B. The demand for gasoline a year after a price change is less elastic than the demand for gasoline a week after a price change because consumers have had time to adjust. C. The demand for water is less elastic than the demand for diamonds because water is a necessity but diamonds are a luxury. D. The demand for cough syrup is less elastic than the demand for insulin because there are no close substitutes for insulin.