Within the range of prices around the midpoint on a straight-line demand curve, demand is
A) elastic.
B) inelastic.
C) unit-elastic.
D) zero.
C
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The production function is a relationship between the amount of labor employed and
A) the wage rate paid to the workers. B) the maximum quantity of real GDP that can be produced. C) the maximum quantity of nominal GDP that can be produced. D) the amount of labor workers supply. E) all other resources at different levels of employment.
A system of deposit insurance
A) attracts risk-taking entrepreneurs into the banking industry. B) encourages bank managers to decrease risk. C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio. D) increases the likelihood of bank runs.
The extremely rapid _____________ of foreign capital from the flow of international trade can plunge an economy into deep recession.
a. introduction b. departure c. increase d. stalling
We would expect the cross elasticity of demand for Pepsi to be greater in relation to other soft drinks than that for soft drinks in general because:
A. soft drinks are normal goods. B. the income effect always exceeds the substitution effect. C. there are fewer good substitutes for soft drinks as a whole than for Pepsi specifically. D. there are more good substitutes for soft drinks as a whole than for Pepsi specifically.