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Social Science Clinic => Economics => Topic started by: james on Jun 29, 2018

Title: Two reasons why valuing goods at their market prices is different than valuing them at their factor ...
Post by: james on Jun 29, 2018
Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include
 
  A) depreciation and investment.
  B) exports and imports.
  C) personal taxes and corporate taxes.
  D) indirect taxes and subsidies.

Question 2

Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67.
 
  If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now be A) 0.0067.
  B) 0.67.
  C) 6.7.
  D) 67.0.
Title: Two reasons why valuing goods at their market prices is different than valuing them at their factor ...
Post by: stillxalice on Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B