Regarding the price elasticities of demand, which of the following statements is true?
a. Price elasticities vary considerably from product to product
b. Luxurious goods are generally less price elastic.
c. Necessities are generally more price elastic.
d. All of these statements are true.
a
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__________ argue that any exogenous decrease in investment spending would be countered automatically by either increased consumption or interest-sensitive investment spending
A) Monetarists B) Keynesians C) Classical economists D) None of the above.
A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded
a. True b. False Indicate whether the statement is true or false
The upward-sloping portion of a long-run average total cost curve is the result of
a. economies of scale. b. diseconomies of scale. c. diminishing returns. d. the existence of fixed resources.
Which of the following events would most likely be considered a macroeconomic shock?
A) A drought destroys 25% of the strawberry crop in California. B) Mismanagement results in a federal takeover of the largest credit union in the United States. C) OPEC unexpectedly announces a 40% reduction in oil production. D) The Federal Reserve decides to increase the discount rate by 0.25% for the third time in 12 months.