Which of the following is likely to have the most inelastic price elasticity of demand?
A. Automobiles.
B. Pickup trucks.
C. The Hondas one Honda dealer sells.
D. Hondas.
Answer: A
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If we compare the CPI to a perfect cost of living index, we find that they are
A) different because the CPI does not measure prices. B) the same thing. C) not the same because the CPI has a fixed reference base period. D) different because the CPI uses a fixed basket and has some measurement difficulties. E) different because the cost of living has nothing to do with prices.
In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is ________ percent and the equilibrium quantity of loanable funds is ________
A) 6; $1.6 trillion B) 4; $1.8 trillion C) 4; $1.4 trillion D) 6; $2.0 trillion E) 4; $2.0 trillion
Average variable cost is at a minimum at the same amount of output at which
A) average product is at a maximum. B) marginal product is at a maximum. C) average product is at a minimum. D) marginal product is at a minimum.
The U.S. government budget was
A) continuously in surplus from 1959 to the late 1990s. B) in surplus for most of the period from 1959-1970, but was in deficit for most of the period from 1970 to the late 1990s. C) in deficit for most of the period from 1959-1970, but was in surplus for most of the period from 1970 to the late 1990s. D) continuously in deficit from 1959 to the late 1990s.