Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700. Using the midpoint method, the elasticity of supply equals
A) 0.81.
B) 1.24.
C) 2.83.
D) 0.18.
E) None of the above answers is correct.
B
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If a job requires two activities and there are two workers who can perform those activities, then which of the following statements regarding absolute advantage must be false?
a. One worker can have an absolute advantage in both activities. b. One worker may not have an absolute advantage in neither activity. c. Neither worker can have an absolute advantage in either activity. d. Both workers can have an absolute advantage in both activities.
Explain the reasoning behind the shutdown rules. When is it appropriate to operate with a loss?
What will be an ideal response?
A key component of the asset approach to exchange rates is being able to gauge accurately:
a. the price level. b. the rate of inflation. c. expected future exchange rates. d. the GOP gap.
In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A) changes in inventories cannot be determined. B) unused industrial capacity exists in the economy. C) unplanned inventories increase. D) unplanned inventories decrease.