A product that has an elastic demand curve has all of the following characteristics EXCEPT
A) it has many substitutes.
B) a consumer can wait to buy the product.
C) it has few or no substitutes.
D) it is a large part of a consumer's income.
Answer: C
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The quantity theory of money is a theory of how
A) the money supply is determined. B) interest rates are determined. C) the nominal value of aggregate income is determined. D) the real value of aggregate income is determined.
A new government study reveals that daily consumption of peanut butter increases life expectancy by 10 years. What will this do to the input markets for peanuts and peanut butter factory workers? Assuming bologna is a substitute for peanut butter, what will happen in the market for bologna factory workers?
Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:
A. 5 units of labor and 10 units of machines. B. 15 units of labor and 2 units of machines. C. 10 units of labor and 10 units of machines. D. 7.5 units of labor and 5 units of machines.
A risk premium is
A. lower the more risky the future stream of profits. B. an additional compensation paid to the workers of a business enterprise. C. subtracted from the discount rate when calculating the present value of a future stream of profits. D. a measure calculated to reflect the riskiness of future profits.