The demand for a good is more elastic if the
A) good is a necessity.
B) good has few substitutes.
C) good is narrowly defined.
D) supply of the good is plentiful.
E) Both answers B and C are correct.
C
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Tariff rates on goods imported into the United States
a. were prohibited by the Constitution b. have dropped substantially over the past 50 years c. reached an all time high in 1996 d. have steadily increased since 1920 e. have never played a big part in U.S. trade policy
Which of the following serves as the central banker for private banks in the United States?
A. The 12 regional Federal Reserve banks. B. The Executive Branch of government. C. The Board of Governors of the Federal Reserve System. D. The Fed Open Market Committee.
Hypothetical economy: C=$600 billion, I=$300 billion, G=$150 bill Assume for the long run: 1. For every 1% increase (decrease) in interest rate, planned investment decreases (increases) by $5 billion. 2. For every $10 billion increase (decrease) in government spending, interest rate increases (decreases) by 1%. 3. The MPC = 0.8 Assuming the economy is in equilibrium, how much is equilibrium output?
A) $750 billion. B) $900 billion C) $1,050 billion D) $1,350 bill
Economists generally assume that the firm's goal is to
a. minimize its costs. b. maximize its profit. c. make its market share as large as possible. d. maximize its production.