A good that is available for everyone to consume, regardless of who pays and who doesn't, is called a:
A. private good.
B. external good.
C. public good.
D. spillover good.
Answer: C
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If the price of a soda increases from 75ยข to $1.00 and as a result the quantity demanded of sodas decreases from 10 to 9 per week, the elasticity of demand for sodas equals
A) 2.72. B) 0.37. C) 0.83. D) 1.20.
Assume that excess reserves are $10 million, the required reserve ratio is 10 percent, and total reserves are $145 million. Demand deposits are
A) $135 million. B) $1.35 billion. C) $1.35 million. D) $1.45 billion.
Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. What could be a profitable solution to this transfer-pricing problem?
a. Move the decision making to Hanna Barbera b. Turn Tom's division into a cost center c. Base Tom's reward on the company profits d. Base Jerry's reward on the company profits
A tax on sellers and an increase in input prices affect the supply curve in the same way
a. True b. False Indicate whether the statement is true or false