For a linear demand function, Q = a + bP +cM + dPR , the income elasticity is
A. -c.
B. c.
C. c(M/Q).
D. c(Q/M).
E. -c(Q/PR).
Answer: C
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Chapter 15 suggests that the Community Reinvestment Act (CRA) provides an example of
A) bad intentions and bad unintended consequences. B) good intentions and bad unintended consequences. C) bad intentions and good unintended consequences. D) good intentions and good unintended consequences.
Stricter laws and regulations to protect intellectual property rights
A) will tend to have little impact on an economy since intellectual property is not tangible. B) will create a stronger and more successful black market for intellectual property. C) will help to create a more successful market system. D) will only benefit those companies whose intellectual property rights have in the past been ignored.
One of the main causes of economic inequality in Latin America is the
A) failure of governments to support urban consumers. B) lack of progress in raising agricultural productivity. C) lack of governmental interest in solving the problem of inequality. D) focus of governments on agricultural exports to the detriment of food production. E) oil crisis of the 1970s.
Money supply would expand if people chose to hold borrowed funds in cash rather than in checking accounts
a. True b. False Indicate whether the statement is true or false