Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33
B) 0.25
C) 1.00
D) 1.33
E) 3.00
A
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Refer to Table 13-3. What is its average variable cost of production at its optimal output level?
A) $0 (because its optimal output = 0 ) B) $15 C) $14.75 D) $29
Other things equal, increasing home prices tend to
A. force homeowners to spend less than they earn. B. increase the likelihood that homeowners will default on their mortgages. C. allow homeowners to spend more than they earn. D. leave homeowners' ability to spend unaffected.
The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:
A. not having qualified loan officers to make the loans. B. having limited funds available for loans. C. not being able to determine appropriate currency exchange rates. D. counterfeit Carfax reports that make it difficult to properly assess collateral.
Market failure means that
A. an unexpectedly harsh winter shuts down a factory. B. the strike organized by unionized employees fails to achieve its goal. C. too many outdated products are offered for sale in the local supermarket. D. there is overallocation or underallocation of resources to certain economic activity.