The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called
a. price elasticity of demand.
b. consumer surplus.
c. the substitution effect.
d. income elasticity of demand.
B
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A recession occurs and people's incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad
A) increases. B) decreases. C) might increase or decrease. D) remains unchanged.
Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the excess reserve ratio = 5%, an increase in the excess reserve ratio to 10% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.15 to 2.33 B) decrease from 2.33 to 2.15 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54
Karl Marx viewed socialism only as a transition to the ideal state of communism
a. True b. False Indicate whether the statement is true or false
The consensus estimate of the elasticity of labor supply among females is ?0.1. The interpretation of this estimate is what?
A. On average, women will increase hours of work by 1% when their wage increases by 10%. B. On average, women will reduce hours of work by 1% when their wage increases by 10%. C. On average, women will increase hours of work by 10% when their wage increases by 1%. D. On average, women will reduce hours of work by 10% when their wage increases by 1%. E. On average, women will reduce hours of work by 5% when their wage increases by 10%.