Dell lowers the price of their PCs by 10 percent. As a result, the quantity of Gateway computers demanded at the current price decreases by 12 percent.
What is the cross elasticity of demand for Gateway computers with respect to the price of Dell computers? A) -1.20
B) -0.83
C) 1.20
D) 0.83
Ques. 2In the short run, a supply shock that shifts the short-run aggregate supply curve leftward ________ real GDP and ________ the price level.
A) increases; raises
B) decreases; raises
C) increases; lowers
D) decreases; lowers
Ques. 3In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue
A) decreases.
B) is constant.
C) increases.
D) may increase or decrease.
Ques. 4In the above table, net exports equal a
A) surplus of 200 billion.
B) deficit of 200 billion.
C) surplus of 100 billion.
D) deficit of 100 billion.
Ques. 5In the figure above, if the interest rate is 4 percent, there is a 0.1 trillion excess
A) quantity of money and the interest rate will rise.
B) quantity of money and the interest rate will fall.
C) demand for money and the interest rate will fall.
D) demand for money and the interest rate will rise.
Ques. 6A firm that shuts down and produces no output incurs a loss equal to its
A) total fixed costs.
B) total variable costs.
C) marginal costs.
D) marginal revenue.
Ques. 7Proprietorships, partnerships, and corporations are the primary forms of
A) industries.
B) business organization.
C) principal-agent relationships.
D) command-incentive relationships.
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