Which of the following describes a situation in which demand must be inelastic?
A. Total revenue decreases by 10 percent when the price of spats rises by 10 percent.
B. Total revenue decreases by less than 10 percent when the price of spats rises by 10 percent.
C. Total revenue increases by more than 10 percent when the price of spats rises by 10 percent.
D. Total revenue decreases by $10 when the price of spats rises by $10.
Answer: C
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Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is
A) 4 laptops. B) 1/2 of a lapto
Why do booms and recessions tend to be transmitted across national borders?
Sometimes spreading has an advantage over hedging to lower risk because:
A. spreading increases expected returns, hedging does not. B. it is cheaper to spread than hedge. C. spreading does not affect expected returns. D. it can be difficult to find assets that move predictably in opposite directions.
Which of the following is the best example of a one-way network?
A. Network using optical fibers carrying signals to and from a subscriber's location B. The network of towers that connect cellular telephone users C. The network that connects instant message users D. The electricity that flows into residential areas