The change in the quantity demanded of gas because of increasing gas prices over the last decade:
A. was more elastic than it has been in the last six months.
B. has become a non-issue for people now that they are used to higher gas prices.
C. has been relatively the same over both time periods.
D. was less elastic than it has been in the last six months.
Answer: A
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The Keynesian approach assumes that
A) the economy is self-regulating. B) there is no unemployment in the economy. C) the price level is fixed. D) the government budget is always in deficit.
When John earned $65,000 he purchased 10 DVDs a year. His income has just increased to $68,000 and he plans to purchase 15 DVDs this year. John's income elasticity of demand equals
A) 0. B) 0.11. C) 1.67. D) 8.87.
Smart Sam can make a $200 investment that yields $1000 50% of the time and $0 50% of the time. What is his expected return on the investment?
a. $200 b. $300 c. $400 d. $500
Where interdependence is especially pronounced, competition among oligopolists will
a. resemble military tactics and strategies. b. disappear. c. lead to large increases in product output. d. entice more firms to enter the market.