When demand is inelastic, the price elasticity of demand is
a. less than 1, and price and total revenue will move in the same direction.
b. less than 1, and price and total revenue will move in opposite directions.
c. greater than 1, and price and total revenue will move in the same direction.
d. greater than 1, and price and total revenue will move in opposite directions.
a
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Government actions designed to affect the performance of the economy as a whole are called ________ policies.
A. macroeconomic B. social C. microeconomic D. global
Assume that you have heard news that a local radio station is hosting a luncheon at your school by offering hot dogs, chips and cola at no expense to the student body. Why would economists say that this lunch is not truly free?
What will be an ideal response?
An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market:
A. the supply of dollars will increase. B. the dollar will depreciate relative to foreign currencies. C. there will be a movement up the existing demand for dollars curve. D. the demand for dollars will increase.
Refer to the given table. The multiplier in this economy is:
A. 2.
B. 4.
C. 5.
D. 10.