Suppose that when the price of aspirin rises from $2 to $3 per bottle, the quantity demanded falls from 800 bottles per day to 700 bottles per day. Over this range, the demand for aspirin is
a. elastic
b. unitary elastic
c. perfectly elastic
d. inelastic
e. perfectly inelastic
D
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Prior to the recession which began in late 2007, the Federal Reserve purchased ________ of the government budget deficit
A) none B) about 50 percent C) a small portion D) all
Dumping typically occurs as long as the foreign producer sells its output at a price
A) above its total costs. B) below its average total costs but above its average variable costs. C) below its average variable costs. D) above its average fixed costs but below its total variable costs.
Hector has $2,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is $20. Hector spends his entire income when he purchases ________ units of clothing and ________ units of food.
A. 32; 16 B. 50; 10 C. 20; 20 D. 24; 40
The following is an investment schedule. Investment spending is in billions of dollars.
Refer to the data in the table above. Assume that private investment spending is initially $78 billion. If the government finances a deficit and this action increases the interest rate by 2 percentage points, then the government financing would have potentially crowded out:
A. $92 billion of investment spending
B. $17 billion of investment spending
C. $78 billion of investment spending
D. $14 billion of investment spending