When income increases by 6 percent, the demand for potatoes decreases by 2 percent. The income elasticity of demand for potatoes equals
A) -2.00.
B) 3.00.
C) -3.00.
D) 0.33.
E) -0.33.
E
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One of the possible roles governments can play in sponsoring growth is to
A) close the nation to trade in order to protect its domestic producers. B) own more of the nation's resources in order to put them to use. C) limit the use of property rights in order to decrease the harm they create. D) make decisions for its citizens as to the most suitable job. E) provide tax incentives to encourage saving.
Suppose the long-run supply curve for a perfectly competitive industry is horizontal at a price of $12, and the minimum short-run average variable cost for each of the identical N firms in the industry is $8
If the demand curve for the industry decreases so that it intersects the short-run supply curve of the industry at $10, A) in the short run the price will decrease to $10, and the number of firms will still be N. In the long run the price will return to $12, and the number of firms will be less than N. B) in the short run the price will decrease to $10, and the number of firms will be less than N. In the long run the price will return to $12, and the number of firms will return to N. C) in the short run the price will remain at $12, and the number of firms will still be N. In the long run the price will fall to $8, and the number of firms will be less than N. D) In the short run the price will decrease to $10, and the number of firms will be less than N. In the long run the price will return to $12, and the number of firms will return to N.
Entrepreneurs can delegate every one of the following tasks to labor except:
a. hiring and training new employees. b. assuming business risk and uncertainty. c. supervision of the production process. d. researching ideas for new products. e. marketing the goods and services produced.
Prior to 2008, the primary tool used by the Fed to control the money supply was
a. the manipulation of the required reserve ratio banks must hold against their checking deposits. b. the extension of loans to financial institutions. c. the buying and selling of stocks and corporate bonds. d. the buying and selling of U.S. Treasury securities.