If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is
a. elastic
b. inelastic
c. unit elastic
d. suggestive of an inferior good
e. equal to -20
B
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When an employer provides in-kind benefits to employees, the In-kind benefits are _____
a. never taxed as income b. sometimes taxed as income c. always taxed as income d. always taxed as consumption
According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, which of the following statements is TRUE?
A) Chen will be willing to produce only good X and trade units of that good to Holly as long as he receives more than 0.5 units of good Y from her in exchange. B) Holly will be willing to produce only good X and trade units of that good to Chen as long as she receives less than 2.5 units of good Y in exchange. C) Chen will be willing to produce only good Y and trade units of that good to Holly as long has he receives less than 2 units of good X from her in exchange. D) Holly will be willing to produce only good Y and trade units of that good to Chen as long as she receives less than 0.4 unit of good X in exchange.
An increase in the price level caused by a rightward shift of the aggregate demand curve is called:
a. cost-push inflation. b. supply shock inflation. c. demand shock inflation. d. demand-pull inflation.
If a bank has $1,000,000 in reserves and checking deposits of $3,000,000 . what is the bank's reserve position if the required reserve ratio is 20 percent?
a. The bank has $500,000 of required reserves and $500,000 of excess reserves. b. The bank has $600,000 of required reserves and $400,000 of excess reserves. c. The bank has $400,000 of required reserves and $600,000 of excess reserves. d. The bank has $200,000 of required reserves and $800,000 of excess reserves.