The demand for a necessity whose cost is a small portion of one's total income is:
A. perfectly price inelastic.
B. perfectly price elastic.
C. relatively price inelastic.
D. relatively price elastic.
Answer: C
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To calculate the ________ of an alternative, an individual needs to estimate ________ of the alternative
A) marginal benefit; total cost B) marginal cost; total benefit C) opportunity cost; total benefit D) net benefit; both cost and benefit
Students who talk loudly with each other in class
A) create an externality because other students cannot follow the lecture as well. B) disturb nobody. C) benefit the other students in class because they engage in conversation. D) only create an externality if they talk about something unrelated to class.
Which of the following events would reduce the size of the "real-world" money multiplier?
a. Banks hold more excess reserves. b. Households hold less currency. c. The Fed increases the discount rate. d. The Fed reduces the required reserve ratio.
Which of the following is the best example of a disruptive market change related to international trade?
a. a domestic manufacturer opens a new state-of-the-art facility in the home country b. an international manufacturer opens a new state-of-the-art facility in the home country c. an international manufacturer develops a completely robotic manufacturing process d. a domestic manufacturer replaces one international supplier with another international supplier