In Exhibit 5-9, the price elasticity of supply for good X between points A and E is:
a. 3/5 = 0.60.
b. 5/3 = 1.66.
c. 1/2 = 0.50.
d. 1.
a
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If the production of a particular good causes a negative externality, would the equilibrium quantity in a competitive market be less than the efficient quantity or would it be greater than the efficient quantity?
What will be an ideal response?
If inflation in country A exceeds inflation in country B, we can express the percentage change in the units of currency of country A per unit of currency of country B as:
A. the inflation rate in country A - the inflation rate in country B. B. the inflation rate in country A divided by the inflation rate in country B. C. the inflation rate in country A times the inflation rate in country B. D. the inflation rate in country B - the inflation rate in country A.
Suppose the economy is currently experiencing 6% inflation per year. If the Fed wants to reduce inflation to 2% and the sacrifice ratio is 5, then how much annual output must be sacrificed in the transition?
a. 5% b. 10% c. 15% d. 20%
A horizontal demand curve for a firm implies that
A) the firm is a monopoly. B) the market the firm is operating in is not competitive. C) the firm is selling in a competitive market. D) the products of that firm are very different from other firms' products.