Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on the
A) price elasticity of demand.
B) the price elasticity of supply.
C) income elasticity of demand.
D) cross elasticity of demand.
A
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Jeanie Reuter and Ruth Oslen are tenants in first and second floor apartments. Jeanie practices her piano lessons in the morning, while Ruth practices aerobics on drum beats at the same time. Further assume that the value of the practice to Jeanie is $10 while the value of aerobic exercises to Ruth is $6 . Which of the following is a feasible solution to the problem if the cost of negotiation is
zero? a. Ruth will pay Jeanie $6 to make her change the time for piano practice. b. Ruth will pay Jeanie $10 to make her change the time for piano practice. c. Jeanie will pay Ruth $4 to make her change the time for aerobics exercises. d. Jeanie will pay Ruth $6 to make her change the time for aerobics exercises.
Suppose the economy is in a prosperity phase of the business cycle. Employment is high and in the month of August, new demand deposits amounted to $15,000 billion, which supported a total increase (including the $15 billion) of $75,000 billion, which is the maximum allowable. The potential money multiplier, then,
a. must be 5 b. must be 2 c. must be 0.50 d. must be 0.20 e. cannot be determined from the information given
Which of the following is a difference between the White test and the Breusch-Pagan test?
A. The White test is used for detecting heteroskedasticty in a linear regression model while the Breusch-Pagan test is used for detecting autocorrelation. B. The White test is used for detecting autocorrelation in a linear regression model while the Breusch-Pagan test is used for detecting heteroskedasticity. . C. The number of regressors used in the White test is larger than the number of regressors used in the Breusch-Pagan test. D. The number of regressors used in the Breusch-Pagan test is larger than the number of regressors used in the White test.
For given inputs of labor and capital, if technology is better, labor productivity will be
A. higher. B. lower. C. unchanged. D. characterized by increasing returns to scale.