If a 5% cut in the price of a product causes the quantity demanded to rise by 10%, the demand is
A. unit elastic.
B. inelastic.
C. perfectly elastic.
D. elastic.
Answer: D
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Restaurants catering to both a lunch and dinner trade are likely to mark their prices up above the cost of the food more for dinner than for lunch because
A) the demand is greater at dinner. B) the demand is less at dinner. C) the demand is less elastic at dinner. D) the demand is more elastic at dinner.
The domestic currency price of a representative foreign expenditure basket is
A) P, the domestic price level. B) E, the nominal exchange rate. C) P times E, the domestic price level times the domestic price level. D) P , the foreign price level. E) P times E, the foreign price level times the nominal exchange rate.
In 1945–52, the records show that falling price levels stimulated increases in real Gross National Product (GNP)
Indicate whether the statement is true or false
The unemployment rate for older workers is usually ________ the unemployment rate for younger workers.
A. more predictable than B. lower than C. higher than D. approximately equal to