If a 1% change in price leads to a 2% change in quantity demanded, then the elasticity of demand is
A. 0.5.
B. 1.0.
C. 1.5.
D. 2.0.
D. 2.0.
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Suppose that Year 2 is the base year. What is the growth rate of GDP?
A) 44.4% B) 58% C) 67.5% D) 120%
If Happy Avocados, a ready-made guacamole manufacturer, purchases an avocado farm, this is an example of ________.
A) outsourcing B) backward integration C) divestiture D) forward integration
European banks began with which of the following?
a. Churches were the first bankers, lending out cash to help the poor learn a craft. b. Monarchs were the first bankers, lending out cash to help the poor learn a craft. c. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. d. Fishermen were the first bankers, and the paper receipts they issued for fish they stored in the holds of their ships became valued as money.
According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?
A. Always-monopoly is per se illegal under the rule of reason. B. Only when the monopoly created negative externalities. C. Only when the monopoly engaged in illegal business practices. D. Only when the monopoly charged excessively high prices.