If the price elasticity of demand for a good is less than one in absolute terms, we say consumers of this good
A) are not very sensitive to price.
B) are not very sensitive to the quantity they demand.
C) are very sensitive to price.
D) are elastic.
A
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From an economist's perspective, why are public restrooms often dirtier than restrooms in your home?
A. Restrooms in your house are easier to clean. B. Property rights give you an incentive to clean your restrooms. C. There are incentives like a salary for janitors to clean the public restrooms. D. More people use the public restrooms.
Checkable deposits are money because
A) they are protected by the Federal Reserve. B) they are guaranteed by banks. C) checks bounce when there are not enough funds to cash them. D) they can be converted into currency on demand and are used directly as a means of payment. E) only banks and other financial institutions can offer them.
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false
Matt graduates from college and gets a job paying $70,000 a year. While in school, he consumed 5 pounds of chicken and 10 pounds of shrimp a month. After he starts working, he consumes 4 pounds of chicken and 12 pounds of shrimp a month. If everything
else is held constant, we know that A) chicken and shrimp are normal goods for Matt. B) chicken is an inferior good and shrimp is a normal good for Matt. C) chicken is an inferior good for Matt. D) shrimp is a normal good for Matt.