The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.

A. more price elastic; a cup of coffee requires a smaller portion of one's income.
B. less price elastic; a cup of coffee requires a smaller portion of one's income.
C. less price elastic; a cup of coffee is more of a luxury.
D. more price elastic; a cup of coffee is more of a luxury.


B. less price elastic; a cup of coffee requires a smaller portion of one's income.

Economics

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Shares of stock are:

A. legal promises to make regular payments to the stockholder. B. claims to partial ownership of a firm. C. legal promises to repay a debt. D. regular payments made to owners of a firm.

Economics

Suppose you purchase a bond with a coupon of $30 for $1025. You sell it one year later for $1050. What rate of return did you earn? Report a percentage with two decimal places

What will be an ideal response?

Economics

Early in 2008, as the worldwide recession intensified in Europe, it seemed possible that the U.S. might be able to avoid the recession because

A. U.S. interest rates remained the highest in the world. B. the U.S. dollar was very weak relative to the euro. C. the U.S. federal government balanced its budget. D. U.S. exports were falling at a rapid pace.

Economics

You will agree to lend your sister's grandma's daughter $2,000 for a year, if at the end of the year she pays you $2,200. The interest rate you are charging her is

A. 1.1%. B. 9.09%. C. 10%. D. 20%.

Economics