Which of the following would be an example of an inferior good?
a. A small pack of cigarettes
b. A cheap cut of meat
c. A small bottle of milk
d. A large bag of cornflakes
b
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If the Gini coefficient is 1, this means that __________.
a. the income distribution is completely equal b. the income distribution is completely unequal c. that there is no income distribution
If an excise tax is placed on a product that has a perfectly inelastic demand, then: a. the entire tax will be paid by the consumer
b. the entire tax will be paid by the producer. c. the consumer and producer will each pay a share of the tax. d. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply. e. the tax is progressive.
Because the nominal interest rate is always positive, the discount factor is always
A) negative. B) greater than one. C) zero. D) less than one.
Which of the following is not a bank liability?
A. Federal fund borrowings B. Demand deposits C. Non-transaction deposits D. Reserves