An owner of a local salon realized that by decreasing the prices that she charges for haircuts, her revenue has increased. This implies that
a. The demand for her haircuts is elastic
b. The demand for her haircuts is inelastic
c. The demand for her haircuts is unitary elastic
d. The demand for her haircuts is perfectly inelastic
a
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"The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?
What will be an ideal response?
When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
A country is said to be in balance of payments equilibrium, when the sum of its current and its
A) non-reserved capital accounts equals zero. B) reserved capital accounts equals zero. C) non-reserved capital accounts equals to the surplus in the capital account. D) non-reserved capital accounts equals to the deficit in the capital account. E) non-reserved capital accounts is higher than the total capital account balance.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.