The rate at which a consumer must give up y to get one more x is equal to
A) -Px/Py.
B) -Py/Px.
C) -MUx/MUy.
D) MUy/MUx.
A
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________ increases the size of the money multiplier
A) An open market sale of government securities by the Fed B) An increase in the currency drain ratio C) A reduction in the desired reserve ratio D) An open market purchase of government securities by the Fed E) An increase in the size of open market operations
When graphed, variables that are unrelated are shown by either a horizontal or a vertical line
Indicate whether the statement is true or false
Examples of transfer payments are
A) wages, profits, and rents. B) Social Security checks and unemployment insurance payments. C) salaries of educators, police, and firefighters. D) federal government spending for national defense.
The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 ? 0.41 ln P + 0.5 ln M ? 0.33 ln A + 100 ln PDVD, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and PDVD = price of a DVD rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Based on the information given, which of the following statements is false?
A. Movies are normal goods. B. The advertising elasticity of demand for movie tickets is ?0.33. C. Advertising decreases the demand for movie tickets. D. Movies are complements for DVD rentals.