The price elasticity of demand is the
A) percentage change in quantity demanded divided by the percentage change in price.
B) change in quantity demanded divided by the change in price.
C) percentage change in price divided by the percentage change in quantity demanded.
D) change in price divided by the change in quantity demanded.
Answer: A
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Which of the following would be studied by macroeconomists?
A. Inflation in developing countries. B. The effect of government subsidies on sugar prices. C. The impact of the minimum wage on families below the poverty level. D. The effect of rent controls on housing prices in New York City.
If you take investment by U.S. residents in other countries and you subtract investment by foreign residents in the U.S., you will find
a. gross foreign investment b. net foreign investment d. gross domestic product e. negative net foreign investment
Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the ________.
A. Treasury bill rate B. discount rate C. federal funds rate D. prime rate
When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is
A) both a German and a Canadian import. B) a German import and a Canadian export. C) a German export and a Canadian import. D) neither an export nor an import for either country.