The mid-point method of calculating price elasticity of demand:
A. measures the percentage changes relative to a point midway between two points on a demand curve.
B. measures the percentage change relative to a point midway between demand and supply.
C. measures the absolute change relative to a point midway between two points on a demand curve.
D. None of these is true.
Answer: A
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If total private-sector employment increased from 15,000 in March to 15,750 in April, then we know for sure that
A) the private sector created 750 jobs during that time frame. B) the unemployment rate deceased during that time frame. C) the change in private-sector employment was 750 during that time frame. D) All of the above answers are correct interpretations of the information.
In Figure 5.1, the marginal utility of income is
A) increasing as income increases. B) constant for all levels of income. C) diminishes as income increases. D) None of the above is necessarily correct.
If the price of one good goes up and the demand of a related good goes down, the two goods are
A) complements. B) substitutes. C) inferior goods. D) normal goods.
The single source of concern about the national debt is
a. gimmicks like the National Debt Clock. b. the interest payments that must be made on the debt every year. c. the transfer payments that must be made every year. d. the large trade deficits that we face with other countries. e. none of the above.