If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will:
A. increase quantity demanded by 0.5 percent.
B. decrease quantity demanded by 5 percent.
C. decrease quantity demanded by 0.5 percent.
D. increase quantity demanded by 5 percent.
Answer: D
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Rank the following goods from most elastic to least elastic: fruit, apples, Granny Smith apples
A) Fruit, apples, Granny Smith apples B) Apples, Granny Smith apples, fruit C) Granny Smith apples, apples, fruit D) The goods cannot be ranked by elasticity because it ultimately involves the problem of comparing apples to oranges.
Refer to Table 2-9. What is Thailand's opportunity cost of producing one wristwatch?
A) 0.05 pounds of rice B) 20 pounds of rice C) 25 pounds of rice D) 60 pounds of rice
Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System (GPS), is an example of a government policy to promote economic growth by:
A. increasing physical capital. B. increasing human capital. C. increasing the availability of natural resources. D. improving technology.
In order to be drawn correctly, the gap between ATC and AVC is
A. shrinking, but they never cross. B. diminishing until they cross at which point they quickly reconverge. C. diminishing until they cross at which point they diverge. D. constant.