When a football manufacturer prices its footballs at $120 each, it has 10 footballs in stock at any given time. However, when the footballs are priced at $144 each, the manufacturer is left with 16 footballs in stock at any given time. What is the price elasticity of supply of the football?
a. 2.54
b. 0.39
c. 2.43
d. 0.45
c
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From 1950 to 2015 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?
A) government policies that have increased the cost of living and working on farms B) increases in the cost of farming and a desire for young adults to move to urban areas C) rapid growth in farm production and low income and price elasticities for food products D) slow growth in agricultural productivity and low income elasticities for food products
An effective Federal Reserve operating target is a target that is reliably linked to
A) inflation and unemployment rates. B) other operating targets. C) fiscal policy. D) open market operations.
The negative impact of the loss of value of collateralized assets is due to
A) asymmetric information. B) Ricardian Equivalence. C) limited commitment. D) financial intermediation through banks.
Which one of the following is an area of continued disagreement among modern macroeconomists with regard to the use of fiscal policy?
What will be an ideal response?