If the price of a good increases by 10% and the quantity demanded decreases by 10%, then at that price, the good is
A. elastic.
B. unit elastic.
C. inelastic.
D. perfectly inelastic.
Answer: B
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To determine the marginal physical product of labor, you must
a. hold total output constant and calculate how much revenue an additional worker generates b. hold capital constant and calculate how much revenue an additional worker generates hold capital constant c. hold all other factors of production constant and calculate how much output an additional worker produces d. hold labor constant and calculate how much output an additional worker produces e. hold labor constant and calculate how much revenue an additional worker generates
Suppose the U.S. dollar is defined by law as being equal to 0.1 ounce of gold. Further suppose the British pound is defined as being equal to 0.05 ounce of gold. The implied exchange rate between the pound and the dollar is
A. A fixed rate at which $1 = 2 pounds. B. A flexible rate at which $2 = 1 pound. C. A fixed rate at which $2 = 1 pound. D. A flexible rate at which $1 = 2 pounds.
Which one of the following does NOT contribute to economic growth?
A. the growth of the capital stock B. increases in the price level C. the growth of the labor productivity D. the growth of capital
Why might the Federal Reserve intervene in foreign currency markets?
A. to ensure the safety of overseas investments for private investors B. to ensure the safety of overseas investments for banks C. to maintain a desired exchange rate for the dollar D. to ensure the safety of overseas investments for pension funds