Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic.
B) relatively inelastic.
C) perfectly elastic.
D) perfectly inelastic.
B
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The degree to which the public believes the central bank's announcements about future policy is its
A) reputation. B) transparency. C) openness. D) credibility.
Persistent deficit after 1980 was almost entirely due to
A) higher share of expenditures in GDP. B) lower tax revenue. C) lower share of expenditures in GDP. D) Higher tax revenue.
Suppose the market for nursing services in a local community is so dominated by a single community hospital that for all practical purposes it is considered a monopsony. Using the diagram below, answer the question. If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be?
a. W2 and E0 b. W0 and E2 c. W1 and E1 d. W0 and E1 e. W0 and E0
Figure 6.5 illustrates the market for sugar. If sugar imports were banned:
A. domestic producers gain at the expense of domestic consumers. B. domestic consumers gain at the expense of domestic producers. C. domestic consumers gain at the expense of foreign producers. D. foreign producers gain at the expense of domestic consumers and producers.