A 10 percent increase in the price of computer apps leads to a 1 percent decrease in the quantity demanded of copmputer apps. The absolute price elasticity of demand for computer apps is
A. 9.
B. 10.
C. 0.1.
D. 1.
Answer: C
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The federal gasoline tax is an example of:
A. a specific tax. B. an ad valorem tax. C. a lump sum tax. D. an income tax.
If the supply price of land is zero, including costs of transporting goods produced on the land to the market, then
a. positive rents are paid for the acres furthest from the market b. there are no rent-yielding acres c. the demand for land must be infinitely high d. population growth must be high e. landowners will reap higher rents
Suppose that the real exchange rate between the United States and Brazil is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Brazilian goods a basket of U.S. goods buys)?
a. an increase in the quantity of Brazilian currency that can be purchased with a dollar b. a decrease in the price of U.S. goods c. an increase in the price in Brazilian currency of Brazilian goods d. All of the above are correct.
The Southern economy ________________ from the damages of the Civil War.
A. quickly recovered B. experienced no lingering effects C. suffered decades of economic transition