Refer to the scenario above. What is the absolute value of Gary's arc elasticity of demand for shirts?
A) 1.2
B) 2.14
C) 3.26
D) 5
B
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The balance of payments accounts record all of the following EXCEPT the country's
A) domestic investment. B) international lending. C) international borrowing. D) change in official reserves. E) international trading.
If the price level in the United States increases more slowly than the price level in Canada, we would expect
A) interest rates in the United States to be higher than interest rates in Canada. B) the U.S. dollar to depreciate against the Canadian dollar. C) the Canadian dollar to depreciate against the U.S. dollar. D) U.S. productivity to have increased more slowly than Canadian productivity.
Suppose in a democratic society, all voters prefer choice G over choice B; however, when the two choices are presented along with a third choice, R, B wins the election. This violates the assumption of
A) transitivity. B) non-dictatorship. C) independence of irrelevant alternatives. D) completeness.
Most economists believe that classical theory describes the world in the short run but not in the long run
a. True b. False Indicate whether the statement is true or false