Suppose a 10% increase in the price of steak reduces the consumption of steak by 30%. Such a price rise will induce households to spend
A. more of their income on steak.
B. the same amount on steak as before.
C. less of their income on steak.
D. more on products that are complementary with steak.
Answer: C
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Refer to the above table. Demand is unit elastic between the prices of
A) $5.00 & $10.00. B) $6.00 & $7.00. C) $6.00 & $6.50. D) $7.00 & $7.50
The unemployment rate that is consistent with full employment is known as __________________.
Fill in the blank(s) with the appropriate word(s).
The Consumer Price Index (CPI) relies on the calculation of
A) prices of a variable basket of goods that changes frequently. B) prices of a fixed basket of goods that does not change often. C) the components of GDP that change annually. D) the components of GDP that do not change frequently.
In 2014, the NCAA was the subject of two antitrust lawsuits related to video games. The NCAA reached a settlement in which it agreed to
A) pay current and former athletes whose names or images had been used in NCAA-branded video games. B) split into two separate entities, one which monitors college athletics and the other which markets products. C) stop authorizing the production of NCAA-branded video games. D) allow schools to pay athletes so it could continue to use their images in the video games.