While in college, John and Bethany each buy five packages of mac-n-cheese per week. After they graduate and have full-time jobs, John buys six packages per week, but Bethany buys only two packages per week. When looking at income elasticity of demand for mac-n-cheese, John's
a. is negative, and Bethany's is positive.
b. is positive, and Bethany's is negative.
c. is zero, and Bethany's approaches infinity.
d. approaches infinity, and Bethany's is zero.
b
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Which of the following bonds would you prefer to be buying?
A) a $10,000 face-value security with a 10 percent coupon selling for $9,000 B) a $10,000 face-value security with a 7 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $10,000
The three business cycle models differ mostly in their treatment of ________
A) aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) productivity shocks
The Prisoners' Dilemma is so named because
a. the Nash equilibrium is one of the worst outcomes for the players. b. the game has no Nash equilibrium. c. the game is zero-sum. d. players end up earning a lighter sentence than the prosecutor would like.
A federal budget deficit occurs when _____
Fill in the blank(s) with the appropriate word(s).