f the price of hairbrushes decreases by 20 percent, the quantity demanded increases by 2 percent. The price elasticity of demand is:
A. 0.1, and is elastic.
B. 10 and is elastic.
C. 0.1 and is inelastic.
D. 10 and is inelastic.
C. 0.1 and is inelastic.
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A shoe salesman working on commission must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 70% but the effort would cost him $5 . If the typical commission on a pair of shoes was $8, would he decide to work hard?
a. Yes because it is higher than what it costs him in effort b. Yes because it is higher than zero c. No, because it costs him more in effort d. None of the above
If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP: a. in both the short run and the long run. b. in the short run but not the long run
c. in the long run but not the short run. d. in neither the short run nor the long run.
Almost 70 percent of U.S. garbage:
a. is incinerated. b. is recycled. c. goes to landfills. d. is sent on barges to other countries.
Which of the following is the name of the entity, group, or organization that has the power to conduct key monetary policy by purchasing or selling U.S. government securities?
a. The President of the United States b. The Open Market Subcommittee of the Congress of the United States c. CEO's of large commercial banks, with non-binding recommendations by the Fed d. The Federal Reserve Open Market Committee