If the demand curve for orange juice is expressed as Q = 2000 - 500p, where Q is measured in gallons and p is measured in dollars, then at the price of $3, elasticity equals
A) -0.33.
B) -3.
C) -9.
D) -17.
B
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The credit demand curve is the schedule that reports the relationship between the quantity of credit demanded and ________ in an economy, assuming all else equal
A) the average tax rate B) the annual inflation rate C) the nominal rate of interest D) the real rate of interest
The two types of market structures that are imperfectly competitive are:
A. perfect competition and monopolistic competition. B. oligopoly and monopoly. C. monopoly and perfect competition. D. monopolistic competition and oligopoly.
Professor Daniel Trefler at the University of Toronto concluded that Canada ________ from free trade with the United States because _______________.
a. gained; trade creation exceeded trade diversion with the United States b. lost; trade diversion exceeded trade creation with the United States c. first gained, then lost; trade diversion exceeded trade creation after NAFTA was fully implemented d. neither gained nor lost; trade creation equaled its trade diversion with the United States
Figure 5-2
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In Figure 5-2, if the aggregate demand curve shifts outward over time, the economy will
A. experience inflation. B. see a sustained decrease in the price level. C. experience a significant decrease in unemployment. D. experience economic recession.