Demand sensitivity depends on all of the following except:
a. how low is the price of the good.
b. the sensitivity of firms' output to changes in its price.
c. the consumer's income.
d. the availability and closeness of substitutes.
e. the amount of time a consumer has to adjust to price changes.
b
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________ in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right B) An increase; left C) A decrease; right D) A decrease; left
At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that:
A) there are neither economies nor diseconomies of scale. B) there are economies of scale. C) there are diseconomies of scale. D) the cost-output elasticity is greater than one.
Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. the opportunity cost increases over time. B. there's more uncertainty about potential future investment opportunities. C. lenders want to be compensated for being unable to get their money back quickly. D. All of these are true.
A college student who is enrolled in school full-time and not seeking employment is considered: a. out of the labor force
b. unemployable, and not counted in official statistics. c. employed in leisure. d. underemployed.