Given a price elasticity of demand of -0.9, a decrease in price will
A. decrease quantity.
B. increase total revenue.
C. reduce total revenue.
D. leave total revenue unchanged.
Answer: C
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Refer to the table above. Based on this information, we can conclude that Laborland has a ________
A) current account surplus B) current account deficit C) trade surplus D) budget deficit
Which of the following would be represented as a debit in the U.S. balance of payments?
a. U.S. purchase of cars from Italy b. U.S. sale of beef to Israel c. U.S. government receives transfers from foreign governments to support U.S. expenses incurred in Europe d. U.S. residents receive gifts of money from friends abroad e. income received by U.S. resident from overseas investment
Many cities have summer pops series in which the local orchestra performs light classical music in a public park. These performances are free in some areas. Apply the concept of a public good to pops performances and explain whether an admission charge is efficient.
What will be an ideal response?
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What happens if Max's mother gives him 10 pounds of burger?
A) Max would have preferred receiving the dollar value of the burger. B) Max is indifferent between this gift and the dollar value of the burger. C) Max prefers this gift to the dollar value of the burger. D) None of the above.