Suppose when the price of a can of tuna is $1.30, the quantity demanded is 9, and when the price is $1.50, the quantity demanded is 7. Using the mid-point method, the price elasticity of demand is:
A. 29 percent
B. 0.57
C. -0.57
D. -1.75
Answer: D
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A) discretionary fiscal policy. B) discretionary monetary policy. C) automatic stabilizers. D) automatic monetary policy.
Which of the following is not true of minimum wages?
A. They have little effect on highly skilled workers. B. They raise incomes of unskilled laborers who have jobs. C. They prevent some willing workers from getting jobs. D. They decrease wages for unskilled workers.
A rightward shift of the investment demand curve could be caused by:
A. a technological advance. B. pessimism about long-term growth. C. forecasts of unfavorable business conditions. D. a decrease in confidence in short-run economic conditions.
Who is most likely to benefit when the dollar appreciates against the euro?
A. U.S. buyers of foreign goods B. U.S. buyers of U.S. goods C. Foreign buyers of U.S. goods D. Foreign buyers of foreign goods