The ease with which assets can be converted to cash for transactions is called
a) convertibility
b) liquidity
c) float
d) seignorage
e) the substitution effect
b) liquidity
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Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be
A) an increase in the price of sugar. B) a decrease in the price of sugar. C) a leftward shift of the demand curve for coffee. D) a leftward shift of the supply curve for sugar.
Which of the following expressions equals profit per unit of output?
a. MR - MC b. P - AVC c. MR - P d. P - ATC e. MR - ATC
Which one of these firms would be an oligopolist?
A. The only medical doctor in Farmer City, Illinois B. A wheat farmer near Ogallala, Nebraska C. Hewlett-Packard (computers) D. The Billy Goat Tavern in Chicago
If the calculated price elasticity of demand between two points is -1.5, demand is
A) inelastic. B) elastic. C) unresponsive to price. D) unit-elastic.