If price rises from $2 to $3 and the quantity demanded falls from 100 to 99, price elasticity of demand would be
A. 0.03.
B. 0.67.
C. 1.23.
D. 5.81.
A. 0.03.
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An example of the "equity vs. simplicity" tradeoff is the tax treatment of
A. capital gains. B. spouses. C. earned income. D. children.
A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called
A) moral hazard. B) asymmetric information. C) noncollateralized risk. D) adverse selection.
The funds the Fed receives from selling government securities
A) are deposited in a commercial bank. B) disappear into thin air. C) are turned over to the Office of Management and Budget in Washington, D.C. D) are deposited in the U.S. Treasury.
If people are willing this year to buy more of a particular good at each and every price than they were willing to buy last year, the
What will be an ideal response?