If a good has an income elasticity of demand greater than 1, one might classify that good as
A) a necessity.
B) a luxury.
C) unusual.
D) inelastic.
B
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When raising taxes, the quantity effect tells us that the:
A. government gets more revenue per units sold. B. higher tax rate causes fewer units to be sold. C. government gets less revenue per unit sold. D. higher tax rate causes more units to be supplied.
If the world price of a good is lower than its domestic equilibrium price, the country will:
a. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. b. export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. c. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers. d. export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically. e. import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.
Total bank reserves equal
A) checkable deposits + vault cash + traveler's checks. B) vault cash + currency in the hands of the nonbanking public. C) bank deposits at the Federal Reserve. D) bank deposits at the Federal Reserve + vault cash.
Search and wait unemployment is another way to describe:
a. Noncyclical unemployment b. Structural unemployment c. Frictional unemployment d. Cyclical unemployment