Demand for luxuries tends to be
a. elastic.
b. inelastic.
c. indeterminate.
d. unit elastic.
a. elastic.
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Keynes believed that
a. perceived that declines in real wages caused by price-level increases would be resisted by labor, whereas an equivalent fall in the real wage from a money wage cut would be accepted. b. perceived that declines in real wages caused by price-level increases would be more readily accepted by labor than an equivalent fall in the real wage from a money wage cut. c. workers preferred employment stability to wage stability. d. would always be acceptable to labor. e. both b and c.
The Mansfield Public Library has a large number of books that anyone with a library card may borrow. Anyone can obtain a card for free. Because the number of copies of each book is limited, not everyone can have the same book at the same time. What type of good would the library books be classified as in this case?
a. private goods b. club goods c. common resources d. public goods
If the interest rate is 4%, in which of the following cases is the future value the largest?
a. An initial value of $1,000 deposited for 5 years. b. An initial value of $950 deposited for 6 years. c. An initial value of $900 deposited for 7 years. d. An initial value of $850 deposited for 8 years.
Answer the following questions true (T) or false (F)
1. If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product, the firm will be able to earn economic profits in the long run. 2. Firms in perfect competition produce the productively efficient output level in the short run and in the long run. 3. Firms in perfect competition produce the allocatively efficient output in the short run and in the long run.