The buyers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________
A) elastic; inelastic
B) elastic; elastic
C) inelastic; inelastic
D) inelastic; elastic
D
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The process by which productivity raises the average standard of living is referred to as
A) long-run economic growth. B) labor productivity. C) population growth analysis. D) the economic prosperity hypothesis.
If the Fed were required to maintain an absolutely constant growth rate of high-powered money, then the growth rate of the money supply
A) would be zero. B) would be constant at the growth rate of H. C) would be constant but not necessarily at the growth rate of H. D) would fluctuate along with the parameters in the money-creation formula.
If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good b. personal computers must be an inferior good c. personal computers must be a complement d. the substitutes for personal computers must be inferior goods e. the substitution effect is larger than the income effect
The equity market is said to be an efficient market because it is difficult for an investor to continually earn above-normal profits
a. True b. False Indicate whether the statement is true or false