If There Is a -20 Per Cent Change in Y

question 7

Multiple Choice

If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

• A)2
• B)-.025
• C)-1/2
• D)-4
• E)3

Interpret data tables related to employment and unemployment for analysis.

Recognize the short-term and long-term nature of unemployment spells and their implications for policy.

Understand the relationship between stress and behaviors such as overeating, smoking, and alcohol consumption.

Identify subtypes of internet addiction and misconceptions about it.

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Definitions:

Cost of Equity

The return a company needs to generate on its equity investments to compensate its shareholders for taking on the risk of investing.

After-Tax Cost of Debt

The net cost of debt to a company after accounting for the tax deductions on interest expenses.

Market Rate of Interest

The prevailing rate of interest observed in the marketplace for securities of similar risk and maturity.