The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the price elasticity of demand?

When exchange rates are volatile:

A) firms are assured that they will be able to earn profits from currency swings. B) firms engage in more trade. C) trade and cross-border financial and labor flows are reduced as uncertainty and transaction costs take their toll. D) international economic activity is increased.

According to the textbook, income inequality statistics can be misleading because

A) they are collected by the Census Bureau, whose objectivity cannot be trusted.
B) they ignore the income mobility of individual families and households through time.
C) they do not take into account inflation.
D) they fail to be of use in policy proposals and debates.