If the price of calculators increases by 15% and the quantity demanded per week falls by 45% as a result, then the price elasticity of demand is 3
a. True
b. False
Indicate whether the statement is true or false
True
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Critically evaluate the following statement. "Since monopolies are by definition a one-firm industry they are able to charge the consumer the highest price possible."
What will be an ideal response?
The growth of third-party payments (payments by insurers and the government) of healthcare services during the last four decades has been accompanied by
a. a reduction in expenditures on healthcare as a share of the economy. b. an increase in the sensitivity of consumers to the prices of healthcare services. c. persistent increases in the prices of healthcare services and rapid growth in the total expenditures on healthcare. d. an increase in the incentive of suppliers to provide healthcare services at a low cost.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.
Suppose a = 50, c = 0.8, and T = 410. How much is saved out of a total income of 1230?
A) 706 B) 606 C) 278 D) 196 E) 114