On most days the price of a rose is 1 and 80 roses are purchased. On Valentine's Day the demand increases so that the price of a rose rises to 2 and 320 roses are purchased. Therefore, the price elasticity of
A) demand for roses is about 1.8.
B) demand for roses is about 0.55.
C) supply of roses is about 1.8.
D) supply of roses is about 0.55.
Ques. 2Paul runs a shop that sells printers. Paul is a perfect competitor and can sell each printer for a price of 300.
The marginal cost of selling one printer a day is 200; the marginal cost of selling a second printer is 250; and the marginal cost of selling a third printer is 350. To maximize his profit, Paul should sell A) one printer a day.
B) two printers a day.
C) three printers a day.
D) more than three printers a day.
Ques. 3In the above figure, the curve's slope is
A) positive and is becoming steeper.
B) positive and is becoming less steep.
C) negative and is becoming steeper.
D) negative and is becoming less steep.
Ques. 4If the money wage rate increases, the short-run aggregate supply curve shifts rightward.
Indicate whether the statement is true or false
Ques. 5The above gives some of the balance of payments accounts of the United States in 2020.
a) What is the current account balance?
b) What is the capital account balance?
c) What is the official settlements account balance?
Ques. 6The inflation rate in Venezuela has increased between 2005 and 2010, rising from 14 percent per year to 31 percent per year. At the same time, the growth rate of real GDP fell from 10 percent per year to -2.6 percent per year.
The quantity theory of money A) states that the inflation rate over the period would average 4 percent.
B) predicts that the velocity of money will decrease over the period.
C) states that the growth rate of money must have increased over the period.
D) predicts that nominal GDP will decrease over the period.
Ques. 7Gunnar can work as a campus security officer at a guaranteed salary of 20,000 per year or as a real estate agent.
If Gunnar works as a real estate agent, there is a 50 percent chance that he will earn 10,000 per year and a 50 percent chance that he will earn 30,000 per year. Based on the table above, Gunnar's expected utility if he works as a real estate agent is A) 170.
B) 85.
C) 20.
D) 90.
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