The price elasticity of demand is measured by the
A) percentage change in quantity demanded divided by the percentage change in price.
B) percentage change in price divided by the percentage change in quantity demanded.
C) change in quantity demanded divided by the change in price.
D) change in price divided by the change in quantity demanded.
Ans: A) percentage change in quantity demanded divided by the percentage change in price.
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A bilateral exchange rate is an exchange rate:
a. that has two sides: maximal and minimal. b. has exhibited both appreciation and depreciation. c. is a hybrid between fixed and floating. d. between two currencies.
Government transfer payments
a. are subtracted from national income to obtain disposable income. b. can be considered as negative taxes. c. intervene between national product and disposable income in the same way as taxes. d. are counted the same as taxes in computing national income.