Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a smaller percentage change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
True
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The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?
A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee
If a firm has implicit costs as well as explicit costs
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.
The McFadden Act was passed to prevent
A) banks from competing on the basis of deposit rates. B) foreign banks from operating in the United States. C) large nationwide banks from forming. D) banks from holding corporate stock as an asset.
Use the graph to answer the following question:
Suppose the loanable funds market is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur. After the implementation occurs, the equilibrium in the market would be best represented by
A. point A. B. point B. C. point C. D. point D.