Calculate the price elasticity of demand for gasoline implied by what most studies have found
What will be an ideal response?
The price elasticity of demand equals the percentage change in the quantity demanded, 1 or 2 percent, divided by the percentage change in price, 10 percent. Doing the division shows that most studies have found that the price elasticity of demand equals 0.1 or 0.2 .
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The major difference between stocks and bonds is
A. a stock is ownership in the corporation and a bond is a debt instrument of the corporation. B. a stock is a debt instrument of the corporation and a bond is ownership in the corporation. C. a stock has value in the marketplace and a bond does not. D. a bond has value in the marketplace and a stock does not.
If the prices would have been much higher ten years ago for the items the average consumer purchased last month, then one can likely conclude that
A) the aggregate price level has declined during this ten-year period. B) the average inflation rate for this ten-year period has been positive. C) the average rate of money growth for this ten-year period has been positive. D) the aggregate price level has risen during this ten-year period.
Compare two economies A and B that start out with identical production possibilities curves. Economy A chooses an efficient point with 6 consumption goods and 3 capital goods, while economy B also chooses an efficient point, but with 4 consumption goods and 5 capital goods. In the future we can predict:
a. economy A will operate inefficiently. b. economy B will operate inefficiently. c. economy A and economy B will grow equally fast. d. economy A will grow faster than economy B. e. economy B will grow faster than economy A.
A person who has given up searching for work is called:
a. frictionally unemployed. b. structurally unemployed. c. a discouraged worker. d. unemployed.