Suppose the price elasticity of demand for bread is 0.20. If the price of bread falls by 10 percent, the quantity demanded will increase by:
A. 2 percent and total expenditures on bread will rise.
B. 2 percent and total expenditures on bread will fall.
C. 20 percent and total expenditures on bread will fall.
D. 20 percent and total expenditures on bread will rise.
Answer: B
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What are three primary reasons for the growth of international trade over the past 50 years?
What will be an ideal response?
Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Denmark gain compared to the "without trade" numbers?
A) -150 B) 0 C) 150 D) 1,050
The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of
A) irrational behavior. B) a credit market imperfection. C) a vast banking conspiracy. D) the burden of public debt.
The three noteworthy features of corporations’ legal status include all of these except
A. how they are taxed. B. special limits are placed on the losses that may be incurred by those who invest in corporations. C. the corporation is a distinct entity separate from its owners. D. they may invest in the stock market and acquire financing.