The price elasticity of demand is equal to A. the value of the slope of the demand curve. the change in quantity demanded divided by the change in...

1. The price elasticity of demand is equal toA. the value of the slope of the demand curve.B. the change in quantity demanded divided by the change in price.C. the percentage change in price divided by the percentage change in quantity demanded.D. the percentage change in quantity demanded divided by the percentage change in price.2.If the slope of a demand curve is equal to -0.1 thenA. demand is inelastic.B. we don’t know whether the demand is elastic or inelastic.C. the demand is elastic at low prices and inelastic at high prices.D. as price increases by 10 percent quantity demanded decreases by 1 percent.3.When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent. This indicates that the demand for tortilla chips isA. inelastic.B. elastic.C. unit-elastic.D. perfectly inelastic.4.A linear downward sloping demand curve has price elasticities (in absolute values) thatA. increase as price decreases.B. remain constant along the demand curve.C. decrease as price decreases.D. are greater than or equal to 1.5.Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range?A. 0.003B. 0.41C. 2.43D. 46.Holding everything else constant, the demand for a good tends to be more elasticA. the more substitutes there are for the good.B. the shorter the time period involved.C. the more consumers perceive the good to be a necessity.D. the less important the product is in consumersʹ budgets.7.If a firm raised its price and discovered that its total revenue fell, then the demand for its product isA. perfectly inelastic.B. relatively inelastic.C. perfectly elastic.D. relatively elastic.8.If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel isA. a necessity.B. a substitute for another good.C. a luxury.D. an inferior good.9.In order to prove that Motrin and Ibuprofen are substitutes, one should measure the ________and get a ________.A. cross-price elasticity; positive numberB. cross-price elasticity; negative numberC. price elasticity of demand; number greater than 1 (in absolute value)D. price elasticity of demand; number less than 1 (in absolute value)10.If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity supplied of lobster, then the supply of lobster isA. unit-elastic.B. unitarily elastic.C. elastic.D. perfectly inelastic.11.Over the past several decades there has been a rapid growth in international trade. This growth has been due to all except one of the following factors. Which factor has not contributed to the growth of international trade?A. the spread of reliable communicationsB. a change in the tariffs charged on many goodsC. a reduction in shipping costsD. favorable changes in government policies12.Trade that is within a country or between countries is based on the principle ofA. absolute advantage.B. scarcity.C. competition.D. comparative advantage.13.The terms of trade refers toA. the rules and regulations that countries must adhere to when trading.B. the ratio at which a country can trade its exports for imports from other countries.C. the role of the government in overseeing international trade.D. a legal document that specifies the trade quantities agreed to by two countries.14.A quota isA. a limit placed on the quantity of goods that can be imported into a country.B. a tax imposed by a government on goods imported into a country.C. a subsidy granted to importers of a vital input.D. a health and safety restriction imposed on an imported product.17.Dumping refers toA. selling inferior products to unsuspecting consumers.B. selling a product for a price below its cost of production.C. exporting products that do not meet domestic safety standards.D. illegally avoiding tariffs by selling products on the black market.18.The price elasticity of demand for Kellogg’s Raisin Bran is larger in absolute value than the price elasticity for all breakfast cereals.A. TrueB. False19.If the price elasticity of demand is unit-elastic, a 10 percent increase in price will result in a 10 percent increase in revenue.A. TrueB. False20.One of the main sources of comparative advantage is natural resources.A. TrueB. False

1. The price elasticity of demand is equal toA. the value of the slope of the demand curve.B. the change in quantity demanded divided by the change in price.C. the percentage change in price...