For which of the following is demand likely to be least sensitive to price increases?
A. theater tickets
B. spring break vacations
C. prescription drugs
D. restaurant meals
E. a specific brand of cereal
Answer: C
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Suppose the federal funds rate is 6 percent. If the output gap increases by 2 percentage points and the weight on output gap is 0.6, by how much should the federal funds rate increase according to the Taylor rule if all other variables remain unchanged??
A. It should increase by 0.4 percentage points. B. It should increase by 0.6 percentage points. C. It should increase by 2 percentage points. D. It should increase by 1.2 percentage points.
Trade receivables are a sub classification of accounts receivable
Indicate whether the statement is true or false
What is appealing about the gold standard is
A. everyone loves gold. B. its carrying costs. C. its transportability. D. its simplicity.
When is it appropriate to use the market price approach when two related companies are providing services or products to each other?
A) The production for the selling company is falling under full capacity and it needs to increase its sales. B) The purchasing company is currently purchasing a product at a price from an outside supplier as it would from its related company that is operating at full capacity. C) The purchasing company is considered a cost center and is not concerned with maximizing profits for the company. D) The policy of the parent company is that when a product is sold by an outside supplier and by a related party, purchases must be made within the company.