Suppose a babysitter demands payment in full before the parents go out for the night. Using the economic way of thinking, the babysitter is clearly
A) exploiting the parents.
B) exploiting the children.
C) selling short.
D) in it only for the money.
C
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Demand price elasticity measures:
a. how much supply will change as price changes. b. how consumers change their purchases in response to a change in income. c. how consumers change their purchases in response to a change in the price of a substitute good. d. how consumers change their purchases in response to a change in the price of a product. e. the change in price brought about by a change in consumer demand.
Quantitative easing refers to a situation in which conventional monetary policy is ineffective in fighting an economic slump because nominal interest rates are up against the zero bound
a. True b. False Indicate whether the statement is true or false
The circular-flow diagram
a. is an economic model. b. incorporates two types of decision makers: households and firms. c. represents the flows of inputs, outputs, and dollars. d. All of the above are correct.
Which of the following transactions would impact the net investment income in the U.S. balance of payments?
a. A U.S. resident earns interest after investing in an American company. b. A firm in Canada buys an American-made truck for its shipping business. c. An American corporation pays a stock dividend to a resident of Germany. d. An American start-up invests in new machinery for its factory in Chicago.