Economic profits will take into account:
a. explicit costs but not implicit costs.
b. implicit costs but not explicit costs.
c. both implicit and explicit costs
d. neither explicit nor implicit costs.
c
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
When the Fed conducts an open market purchase, the first round changes in the money creation process are that excess reserves ________, bank deposits ________, and the quantity of money ________
A) decrease; increase; does not change B) do not change; increase; increases C) increase; increase; increases D) increase; do not change; increases E) decrease; decrease; decreases
A price floor
A) changes the equilibrium price if it is imposed in black markets. B) changes the price and quantity if it is set below the equilibrium price. C) changes the price and quantity if it is set above the equilibrium price. D) does not create a black market if it is set above the equilibrium price. E) changes the price and quantity only if it equals the equilibrium price.
Bubba's Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill
All else equal, customers who arrive by public transportation to take advantage of Bubba's Hula Shack discount have a ________ for the services of the establishment than customers who drive to the establishment. A) higher price elasticity of supply B) lower price elasticity of supply C) lower price elasticity of demand D) higher price elasticity of demand