What are the two reasons for the government to intervene in a market?
To promote efficiency and equality
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Define net borrower, net lender, creditor nation, and debtor nation. Discuss the difference between a net borrower and a debtor nation
What will be an ideal response?
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in three years?
A) $155,000 B) $115,000 C) $120,000 D) $133,000
Elasticity provides a guide to both
a. market stability and change in revenue as price changes. b. responsiveness of quantity demanded to a change in price and market stability. c. responsiveness of quantity demanded to a change in price and change in revenue as price changes. d. technological change and change in revenue as price changes.
Assume that a 3 percent increase in income across the economy produces a 1 percent decline in the quantity demanded of good X. The coefficient of income elasticity of demand for good X is:
A. negative and therefore X is an inferior good. B. negative and therefore X is a normal good. C. positive and therefore X is an inferior good. D. positive and therefore X is a normal good.