To answer the question, refer to the following table showing a demand schedule: 
If price falls from $200 to $150, what is the elasticity of demand over this range?
A. -2.5
B. -3.0
C. -1.0
D. -0.62
E. -1.17
Answer: E
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Suppose Julie plants a beautiful garden in her front yard. The benefits of the garden to Julie and to her neighbors equals the
A) external benefit. B) marginal private benefit. C) marginal external benefit. D) marginal social benefit. E) marginal social cost.
A price floor represents
A) a maximum price that can be legally charged for a product or service. B) a minimum price that can be legally charged for a good or service. C) a lottery imposed upon producers by the government. D) a first come, first served mechanism for controlling prices.
According to monetary neutrality and the Fisher effect, an increase in the money supply growth rate eventually increases
a. inflation and nominal interest rates, but does not change real interest rates. b. inflation, nominal interest rates, and real interest rates. c. inflation and real interest rates, but does not change nominal interest rates. d. nominal interest rates and real interest rates, but does not change inflation.
At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the production of fake killer whales exhibits:
A. constant returns to scale. B. diminishing marginal product. C. increasing returns to scale. D. decreasing returns to scale.