If gasoline prices rise by 20% and quantity demanded falls by 5%, then the price elasticity of demand for gasoline is:

In order to maintain an effective fixed exchange rate that differs from the market rate, the government must have

a. arbitrage capability b. a surplus of merchandise exports c. the ability to persuade other governments to control their exports d. sufficient foreign exchange reserves e. the ability to float high interest rates

To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000 . If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should

a. install the light because the expected benefit of $400,000 is greater than the cost. b. install the light because the expected benefit of $45,000 is greater than the cost. c. not install the light because the expected benefit of $45,000 is only equal to the cost. d. not install the light because the expected benefit of $40,000 is less than the cost.