If the price of gasoline increased by 10% and consumers responded by purchasing 10% less gasoline, the absolute value of price elasticity of demand for gasoline would equal
A. 0.1.
B. 1.
C. 10.
D. 0.5.
Answer: B
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Refer to the information above. What is the approximate value of the multiple of combined physical and human capital that the rich country must have in order to produce 10 times the output per person of the poor country?
A) 1000 B) 100 C) 25 D) 15
Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case? a. Real wage would fall by about 10 percent
b. Real wage would increase by about 20 percent. c. Real wage would fall by about 25 percent. d. Real wage would increase by about 50 percent. e. Real wage would increase by about 3 percent.
Which of the following is likely to be a monopolist?
A. a potato chip company that sells a high quantity of chips, but competes with other chip producers B. a farmer who specializes in growing organic fruits and vegetables C. the sole producer of a new medical device for people with limited mobility D. the chemical company in a small town that employs most of the town's workforce
Suppose a binding price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia?
A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result. B) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result. C) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result. D) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.