The government introduced a requirement that all gasoline used in the US must use an increased share of ethanol in the gasoline sold. Consider the market of corn - a commodity which is used in ethanol production. Indicate whether there is a shift in supply (S) or demand (D).
a. Demand
b. Supply
a. Demand
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Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a______ reason for saving.
A. precautionary B. life-cycle C. bequest D. private
The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.
Answer the following statement true (T) or false (F)
A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
Central bankers with a relatively steep monetary policy reaction curve will:
A. move interest rates more aggressively when inflation rises, leading to more volatility in output. B. move interest rates less aggressively when inflation rises, leading to less volatility in output. C. move interest rates more aggressively when inflation rises, leading to less volatility in output. D. move interest rates less aggressively when inflation rises, leading to more volatility in output.