Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:
A. the price of some other product.
B. the price of that same product.
C. income.
D. the general price level.
Answer: A
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Which of the following countries has a flat SAS curve?
A) Brazil B) U.S. C) Argentina D) All of the above.
You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over
A. equity. B. stability. C. efficiency. D. economic growth.
As long as the interest is greater than zero, the future value of any balance is
A. either larger or smaller than the balance itself, depending upon the size of the positive interest rate. B. greater than the value itself. C. smaller than the value itself. D. equal to the value itself.
The minimum wage is a
A) factor that decreases unemployment because fewer people search for work if the minimum wage is increased. B) possible cause of job search because it lowers wages below their equilibrium. C) possible cause of job rationing because it raises wages above their equilibrium. D) possible cause of job rationing because it lowers wages below their equilibrium. E) government established highest wage that is legal to pay.