An inferior good is characterized by:
A. a positive income elasticity of demand.
B. a negative income elasticity of demand.
C. a negative price elasticity of demand.
D. a positive price elasticity of demand.
B. a negative income elasticity of demand.
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Cyclical unemployment refers to unemployment resulting from
a. a mismatch of skills b. being in the wrong location at the wrong time c. the time and monetary cost of finding the best job d. climatic changes in weather affecting employment, such as agriculture and fishing e. periodic declines in business activity.
Which of the following central banks does not have an explicit inflation target?
a. The Bank of England b. The Federal Reserve c. Swiss National Bank d. European Central Bank
When a negative externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency
A) external costs are necessarily greater than private costs; government B) social costs equal private costs; no government C) social costs are less than private costs; government D) social costs are greater than private costs; government E) none of the above
If M is 2,000, Q is 1,000, and P = 6, then V
A. Is 2. B. Is 3. C. Is 6. D. Is 12.