The income elasticity of demand for used cars is less than zero, so used cars are
A) an inferior good.
B) a normal good.
C) an inelastic good.
D) a perfectly inelastic good.
E) a substitute good.
A
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When the social costs of producing or consuming a good exceed the private costs, _____
a. a positive externality exists b. an inefficiently high quantity of the good will be produced and consumed, from the society's point of view c. the direct consumers of the good will bear the external costs d. the individuals involved in the production of the good do not bear the private costs e. the quantity of the good produced will be less than the socially efficient level
Improvements in and greater stocks of land, labor, capital, and entrepreneurial activity will shift the production possibilities curve: a. outward, such that more goods and services can be produced
b. outward, such that the cost-of-living rises. c. inward, such that the marketplace experiences a decrease in price and output levels. d. inward, because more resources will be used up and not renewed.
The difference between the nominal interest rate and the real interest rate is:
A. the inflation rate. B. taxes. C. seigniorage. D. hyperinflation.
If most bankers could do what they wanted, they would probably hold reserves of about
A. 0%. B. 2%. C. 7-8%. D. 10-12%. E. 22-25%.