Which has a more elastic demand: hamburger or beef?
What will be an ideal response?
Hamburger has the more elastic demand because there are more substitutes for hamburger than there are for beef. Anything that is a substitute for hamburger is also a substitute for beef. Plus, any other kind of beef is a substitute for hamburger.
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Briefly explain how capacity utilization rates are used by forecasters
What will be an ideal response?
During a banking panic, a lender of last resort will
A) purchase banks which are having difficulty but appear sound. B) make loans to solvent but temporality illiquid banks. C) make loans to insolvent but liquid banks. D) make loans to any banks which request them.
To achieve the socially optimal level of pollution, the biggest polluters should be targetted for the greates reduction in pollution
a. True b. False
When economists speak of the demand for money, they refer to the amount of money people would like to hold
a. given that it can only be printed slowly b. in the best of all possible worlds c. in their bank accounts rather than their wallets d. at each interest rate e. rather than spend