Price elasticities are calculated for four goods, and the values are: 5.5; 3.5; 1.0; 0.2. Which price elasticity is most elastic?
A. 0.2
B. 3.5
C. 5.5
D. 1.0
Answer: C
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High-income people will sometimes pay higher prices at convenience stores for goods that are available at discount stores. They do this because
a. they are irrational b. their opportunity cost of time is low c. crowded and understaffed discount stores impose higher time costs d. they like to be seen paying more money e. they do not mind wasting time
Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then Gary pays
a. $10,000 in taxes and Sandy pays $5,000 in taxes b. $10,000 in taxes and Sandy pays $10,000 in taxes c. $15,000 in taxes and Sandy pays $5,000 in taxes d. $15,000 in taxes and Sandy pays $10,000 in taxes e. $17,000 in taxes and Sandy pays $5,000 in taxes
Which of the following is both a store of value and regularly used as a medium of exchange?
a. cash and stocks b. cash but not stocks c. stocks but not cash d. neither cash nor stocks
The capital markets can be divided into two broad categories:
What will be an ideal response?