People learn to hold a specific quantity of money for the groceries, theater tickets, gasoline, clothes, film, and other items they habitually purchase. This behavior is representative of the:
A. precautionary demand.
B. speculative demand.
C. transactions demand.
D. volatility demand.
Answer: C
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A firm raises the price it charges. The firm's total revenue decreases. What can we conclude about the price elasticity of demand?
A) Demand is elastic. B) Demand is unit elastic. C) Demand is inelastic. D) Demand is perfectly inelastic. E) Not enough information is given to conclude anything about price elasticity of demand.
The demand for all carbonated beverages as a whole is likely to be ________ the demand for Dr. Pepper
A) perfectly inelastic compared to B) perfectly elastic compared to C) more elastic than D) less elastic than
The FOMC "Statement on Long-Run Goals and Monetary Policy Strategy"made it clear that the Federal Reserve would be pursuing ________, consistent with its dual mandate
A) a flexible form of inflation targeting B) a strict form of inflation targeting C) a zero inflation targeting D) an implicit inflation targeting
Which of the following is not correct?
a. Countries that have had higher output growth per person have typically done so without higher productivity growth. b. A country's standard of living and its productivity are closely related. c. Productivity refers to output produced per hour of work. d. Increases in productivity can be used to increase output or leisure.