In the above table, the cross price elasticity of demand for good C with good B when PB rises from $15 to $18 is
A. +2.20.
B. -1.10.
C. +1.10.
D. -2.20.
Answer: B
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A sum of money received at a future date is worth less than the same sum of money received today. Why? Explain this with an example.
What will be an ideal response?
The windfall profits tax on oil will curtail oil production if
a. oil executives decide to be spiteful. b. the demand for oil is inelastic. c. the supply curve for oil is upward sloping. d. the supply curve for oil is vertical.
The firm's most efficient output
A. is OR.
B. is OS.
C. is OT.
D. None of the choices are correct.
How do the banks create money?
A. When there is a decrease in checking account deposits, banks lose reserves and reduce their loans, and the money supply expands B. When there is an increase in checking account deposits, banks gain reserves and make new loans, and the money supply expands C. Banks buy bonds in the open market and gain reserves; this excess reserve holding increases the money supply