. The mid-point method of calculating elasticity is typically used because:
A. it is easier to calculate.
B. it is universally understood by all economists.
C. the negative sign can then be ignored.
D. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement.
D. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement.
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A decrease in the supply of labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Taxes levied on imports are called ________
A) embargo B) seigniorage C) quotas D) tariffs
If a nation's current account is -$200 billion and its financial account (excluding its official settlements balance) is $175 billion, how much is its official settlements balance?
A) -$25 billion B) +$25 billion C) -$375 billion D) +$ 375 billion
Prices in a market economy perform a rationing function because they reflect
A) the demand of all buyers in the market. B) the extent to which the goods are necessities. C) the strength of the supply curve. D) the relative scarcity of the goods.