Refer to the following figure. At a price of $6, the point elasticity of demand for D1 is ________ and marginal revenue is ________.
A. -0.5; negative
B. -0.2; negative
C. -1; zero
D. -5; positive
Answer: C
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To reduce economic volatility the Fed should push the economy toward a
A) positive output ratio. B) negative output ratio. C) zero output ratio. D) All of the above are consistent with reduced volatility.
Pollution prevention
a. has nothing in common with industrial ecology b. emphasizes the household sector c. suggests source reduction and toxic chemical use substitution as preventive goals for industry d. none of the above
Taxation alters the behavior patterns of individuals.
Answer the following statement true (T) or false (F)
Assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that the foreign interest rate falls. Discuss what policy makers must do to maintain the pegged exchange rate. Also discuss what effect this will have on domestic output and net exports
What will be an ideal response?