If the quantity demanded changes by an infinitely large amount for a given change in price, then demand is
A) perfectly inelastic.
B) perfectly elastic.
C) elastic.
D) inelastic.
B
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Productivity measures: a. how efficiently resources are turned into goods and services
b. how efficiently goods and services are consumed by the consumers. c. the level of skills embodied in a unit of labor. d. the ratio of inputs to a specific amount of output. e. the availability of resources in an economy.
The foreign exchange system that has the highest foreign exchange risk is
A. the Bretton Woods system. B. the Gold Standard C. the fixed exchange rate. D. the floating exchange rate.
If a bushel of corn sells for $2 in the United States and for 4,000 COP (Colombian peso) in Colombia, and if 1 dollar is worth 2,200 COP, then:
a. the corn is 400 COP more expensive in Colombia. b. the corn is 400 COP cheaper in Colombia. c. the price of a bushel of corn equals $2 in both the United States and Colombia. d. the price of corn is 4,000 COP lower in Colombia than in the United States. e. the price of corn is $0.20 lower in the United States than in Colombia.
In computing GDP, market prices are used in the calculations because a. market prices are constant over time
b. market prices do not reflect how prices change over time. c. market prices are consistently free of inflation. d. market prices can be used to combine the variety of goods and services produced in an economy into a single measure.