If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will
A) increase the quantity supplied by 3.33 percent.
B) increase the quantity supplied by 30.0 percent.
C) increase the quantity supplied by 0.33 percent.
D) decrease the quantity supplied by 30.0 percent.
B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Consumers will willingly make less-informed decisions: a. if information costs are less than the perceived benefits of gathering information. b. if information costs are greater than the perceived benefits of gathering information. c. since ignorance always leads to bliss
d. whenever acquiring more information requires sacrifice.
The Federal Reserve System
A) is the central bank of the United States. B) controls the money supply. C) is the lender of last resort. D) handles the sale of U.S. Treasury securities. E) all of the above
A surplus of a good could possibly be eliminated by:
A. a sufficient increase in supply keeping price constant. B. the removal of a price floor. C. the removal of a price ceiling. D. a sufficient decrease in demand keeping price constant.