The demand for classical music is ________ than is the demand for Beethoven's music because ________.
A. more price elastic; classical music requires a smaller portion of one's income
B. less price elastic; classical music requires a smaller portion of one's income
C. less price elastic; the scope of the market for classical music is more broadly defined
D. more price elastic; the scope of the market for classical music is more broadly defined
Answer: C
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Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?
a. 2.76 million b. 31.74 million c. 34.5 million d. 42.32 million
The demand for a particular brand of automobile is likely to be more inelastic than the demand for automobiles in general
a. True b. False
When the price level rises
a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes. b) the interest rate falls because people will want to hold more money and so sell bonds. c) the interest falls because people will want to hold less money and so buy more bonds. d) firms will spend more on new business buildings and business equipment and households will want to spend more on building new homes.
You have $20,000 of current income and $45,000 of future income. The interest rate between the current and future period is 2 percent. When you allocate consumption optimally between the two periods the marginal rate of time preference between the two periods is
A. 0.80. B. -1.02. C. -1.00. D. -1.80.