The argument that demand for apartments is more elastic in the long run is based on the idea that
A. landlords will fix up many new apartments when there are small changes in rent.
B. it takes time to build new apartments.
C. people will change apartments more readily when there is only a short time to benefit from lower rent.
D. it is costly to move quickly to a different location.
Answer: D
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An economy produces at point a on the PPF shown in the above figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat ________
A) remains the same B) increases C) is impossible to calculate without numbers on the axes D) decreases
Which statement best describes economic fluctuations?
a. Expansions and contractions typically have about the same lengths. b. Expansions typically last 7 years, while recessions typically last 3 years. c. Expansions tend to be shorter than contractions. d. The percent change in output is larger during recessions than during expansions. e. Expansions and contractions vary in duration and magnitude, with expansions tending to last longer than contractions.
Consider three bonds, from Corporation X, Corporation Y, and Corporation Z. The X and Y bonds mature in 1 year, while the Z bond matures in 2 years. The Y and Z bonds have face values of $5,000 . while the X bond has a face value of $4,000 . If the interest rate is 10 percent (0.10) per year, rank the three bonds from highest present value to lowest present value
a. X, Y, Z b. Z, Y, X c. Y, Z, X d. Z, X, Y e. Y, X, Z
If we add together all the gains from specialization and trade and then subtract all the losses, the net result would be
A. Positive: a net gain for the world and each country. B. Negative: a net loss for the world and each country. C. Impossible to tell: the net result could be zero, positive, or negative. D. Zero: the gains and losses would cancel out.