Peter's monthly income increases from $1,500 to $1,600. As a result, he increases the number of DVDs he buys per month from 2 to 3. Peter's demand for DVDs is
A) price elastic.
B) price inelastic.
C) income elastic.
D) income inelastic.
C
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A market system is not considered an effective way of controlling self-interest.
Answer the following statement true (T) or false (F)
By the 2000s, an important market change occurred when investment banks became significant participants in the secondary market for
A) corporate bonds. B) currency. C) mortgages. D) Treasury securities.
Advocates of fixed rules believe that politicians focus more on re-election than on sound policy
a. True b. False Indicate whether the statement is true or false
Which of the following government programs will NOT create a surplus?
A. farm price support payments B. the minimum wage law C. usury laws D. a price floor above the equilibrium price