If a 10% decrease in the price of a good leads to a 20% increase in the quantity demanded, then what is the price elasticity of demand?
A. ½.
B. 2.
C. 20.
D. 10.
Answer: B
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A motivation for holding stock is
A. To receive interest payments on the firm's debt. B. To have a direct role in the operation of the corporation. C. To own a low-risk, illiquid asset. D. The anticipation of capital gains.
Use the following information to answer the next question.C = A + .875(Y - T)A = $10,000I = $2,000G = $2,500T = $1,000NX = $1,025If investment decreases by $250, what is the new equilibrium level of real GDP?
A. $114,800 B. $115,200 C. $119,200 D. $107,200
The supply-side shocks that affected the United States in 1973 and 1979 were the result of
A. government tax policies. B. union wage demands. C. OPEC policies regarding the availability and price of crude oil. D. periods of stagflation in which the United States had achieved low or negative rates of growth in real GDP.
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting:
A. 1/12 of a snowboard. B. 1/8 of a snowboard. C. 1/3 of a snowboard. D. 3 snowboards.