If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3
B. 1
C. 0.3
D. 0
Answer: A
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If the consumption function is given by C = 100 + .6(Y-T) and planned investment is 150, government spending is 50, and T is 100, then equilibrium income is
a. 600 b. 750 c. 400 d. 350
A cake is to be shared by two people. Both desire the largest piece possible. One of the two will cut the cake. Under which of the following situations will the cutter adopt a Rawlsian social welfare function?
A) The person cutting the cake chooses the first piece. B) The person not cutting the cake chooses the first piece. C) The two individuals will bid for the right to cut the cake and choose first. D) The two individuals will toss a coin for the right to cut the cake and choose first.
Which of the following factors is associated with products with a highly price elastic demand?
a. Few close substitutes. b. A very short time period for consumers to respond to price changes. c. Many very close substitutes. d. A per unit price that is only a very small portion of most peoples' budgets.
If the inflation rate in 2014 was 12.5 percent and the price index for 2012 (the base year) was 100, the price index for 2014 was _____
a. 120.5 b. 121.5 c. 112.5 d. 102.5