Price elasticity of demand is defined as
A. slope divided by price.
B. percentage change in price divided by percentage change in quantity demanded.
C. percentage change in quantity demanded divided by percentage change in price.
D. the inverse of the price elasticity of supply.
Answer: C
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The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price is $1,000 for a ton of turnips. In the long run, the market supply of turnips will ________
A) decrease and the price of a ton of turnips will fall to $600 B) increase and the turnip grower's economic profit will increase C) increase and the turnip grower's economic profit will decrease D) decrease and the price of a ton of turnips will rise to $1,200
Which of the following is an interest rate target specified in the FOMC directive?
A) Discount rate B) Treasury bond rate C) Federal funds rate D) The prime rate
Regional specialization did not emerge in the colonies due to the small size of the cities and towns
Indicate whether the statement is true or false
The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B
A. increases the money supply initially by $1,000. B. reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount. C. reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount. D. reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.