You have the following demand equation for a pack of cigarettes: Q = 200 - 0.30P with the average quantity 3 packs and average price $3.00 per pack. What is the price elasticity?
A) 0.30
B) -0.30
C) 1.0
D) -1.0
B
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Which of the following is part of an economic model?
A) assumptions B) norms C) preferences of economic agents D) opinions
A factor market is any place or process where
A. Finished services are bought and sold. B. Land, labor, or capital is bought and sold. C. Finished goods are bought and sold. D. None of the choices are correct.
If the rate of exchange between the U.S. dollar and the British pound were £1.00 to $2.00, then a U.S. tourist buying a British product costing 600 pounds would need to exchange dollars in the amount of
a. $2,400. b. $600. c. $300. d. $1,200.
Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is
a. just as efficient. b. less efficient because the time spent waiting in line imposes an opportunity cost on the buyer that does not generate revenue for the seller. c. more efficient since waiting in line reduces the transaction costs of purchasing goods. d. more efficient since waiting in line reduces the cost of the goods to the consumer.