If the demand for a good is determined to be "unit elastic," then the elasticity measure
A) is greater than 1.0.
B) is equal to 1.0.
C) is less than 1.0.
D) is infinite.
B
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Demand-pull inflation is caused by:
a. an increase in aggregate demand. b. a decrease in aggregate demand. c. an increase in aggregate supply. d. a decrease in aggregate supply.
The low interest rate policies of the Federal Reserve during 2002-2004,
a. indicated that monetary policy was highly restrictive. b. increased the demand for housing, placing upward pressure on housing prices. c. made home mortgages less attractive, weakening the demand for housing. d. was on target with the federal funds rate proscribed by the Taylor rule.
International free trade:
A. may have individual winners and losers of surplus within a country. B. creates surplus only for the producers in a country. C. allows everyone involved to gain surplus. D. creates surplus only for the consumers in a country.
The minimum efficient level of production refers to the production level in the long run that spreads setup costs out just enough to make production profitable.
Answer the following statement true (T) or false (F)