If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________
A) 10.0
B) 6.0
C) 0.25
D) 16.0
E) 4.0
E
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Charging "what the traffic will bear" was a tactic commonly pursued by American railroads before they were subjected to regulation
Indicate whether the statement is true or false
Suppose that the Council of Economic Advisers tells the President that "the unemployment rate is 4 percent." The President responds, "That rate is still too high." The President's statement is
a. a normative statement b. a positive statement c. empirically verifiable by checking economic data d. an indisputable statistical fact e. an incorrect positive statement
Which of these is an example of an expansionary fiscal policy?
a. A decrease in fiscal expenditure on Social Security b. An increase in the personal income tax rate c. A decrease in fiscal expenditure on national defense d. An increase in transfer payments
Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C