The basic problem addressed in economics is

a. scarce resources and unlimited wants
b. scarce wants and unlimited resources
c. cost minimization
d. how to manage a financial portfolio
e. unlimited time and unlimited potential


A

Economics

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Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes

A) ec/(e - c). B) (1 + c)/(e + c). C) (1 - c)/ec. D) 1 - e - c. E) ec - (1/c).

Economics

The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). If the price were zero, consumer surplus equals

A) $301.00. B) $924.50. C) $1,225.50. D) $1,250.00.

Economics

What is a circular flow diagram and what does it demonstrate?

What will be an ideal response?

Economics

If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:

A) 0.67. B) 1.5. C) 2.0. D) 3.0.

Economics