If producers have imperfect information about the general price level and sometimes misinterpret changes in the general price level as changes in relative prices, then
A. the aggregate demand curve is horizontal.
B. the short-run aggregate supply curve slopes upward.
C. the aggregate demand curve is vertical.
D. the short-run aggregate supply curve is vertical.
Answer: B
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If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good, then the
A) good is a normal good. B) good is an inferior good. C) income elasticity of demand is 0.5. D) income elasticity of demand is 2.0. E) income elasticity of demand is 5.0.
Which of the following is true about the Bitcoin:
a. New Bitcoins are created by private, non-Bitcoin affiliated individuals (i.e., not Bitcoin employees) called miners, who solve computer algorithms to earn the newly created Bitcoins. b. New Bitcoins are created by the Bank of Bitcoin (BoB), which is (for all intents and purposes) the central bank in charge of Bitcoin's supply. c. New Bitcoins are created by Bitcoin Inc., which is a company, like Facebook or Microsoft, thathas developed this virtual currency. d. Bitcoin transactions are cleared through clearing houses, such as Mt. Gox. e. Bitcoin has a fixed exchange rate relative to the U.S. dollar and other currencies.
Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them
a. True b. False Indicate whether the statement is true or false
The term externalities refers to
A. The impact on markets of imported goods. B. Black-market economic activity. C. The inequitable distribution of income. D. The costs or benefits of a market activity borne by a third party.