If a 2 percent change in price is followed by a 10 percent change in quantity sold, the coefficient of price elasticity is
a. 0.2.
b. 5.0.
c. 8.0.
d. 20.0.
b. 5.0.
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Which of the following is an example of a product that is excludable and rival?
A) a motorcycle B) the court system C) Western lowland gorillas D) a NASCAR event
How is the architecture within firms usually designed?
What will be an ideal response?
Individuals are allowed to deduct a percentage of their expenditures for health care from their taxable income if these expenditures are above a certain amount. This reduces the amount that must be paid in taxes. Allowing for these deductions would ________ vertical and horizontal equity of the federal income tax.
A. not change B. improve C. worsen D. Any of the above answers could be correct.