If the value of the price elasticity of demand is -0.2, this means that a
a. 20 percent decrease in price causes a 1 percent increase in quantity demanded
b. 0.2 percent decrease in price causes a 1 percent increase in quantity demanded
c. 5 percent decrease in price causes a 1 percent increase in quantity demanded
d. 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
e. 100 percent decrease in price causes a 200 percent increase in quantity demanded
C
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Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know marginal benefit
A. is less than marginal cost. B. and marginal cost do not depend on the quantity. C. is greater than marginal cost. D. equals marginal cost.
The chain-weighted output index method of measuring real GDP is based on
A) using current prices rather than base year prices. B) averaging the market value of the expenditures over a two year period and then comparing with a base period. C) using the prices of two adjacent years to calculate the growth rate of real GDP. D) averaging the nominal and real measures of GDP to come up with a more accurate figure.
The Fed's "dual mandate" is to achieve ________
A. a government budget surplus and low interest rates B. low inflation and maximum employment C. a stable quantity of money and stable prices D. zero unemployment and a stable means of payment
Which of the following could lead to an inward shift of the production possibilities frontier?
a. an increase in the cost of one good b. an increase in the utilization of resources c. a rise in the level of technology d. a law is passed whereby a mandatory retirement age of 60 is imposed e. a decrease in the utilization of resources