Suppose the demand for good X, an agricultural product, is price-inelastic. This means that small variations in the quantity of X produced will be associated with large variations in the:
A. Price of good X
B. Incomes of consumers of good X
C. Cost of producing good X
D. Quantity of good X exchanged
A. Price of good X
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Perhaps the best measure of economic progress is
A. the annual inflation rate, since it accounts for what is happening to prices. B. the growth rate of real GDP per capita, since it takes into account both price changes and population growth. C. the amount of working time needed for an individual worker to afford certain goods and services. D. the annual growth rate in the population.
The Keynesian aggregate supply schedule slopes upward because of
a. unstable expectations. b. inflexible wages and prices. c. changes in technology. d. differences between actual and expected price levels.
To increase the money supply, the Fed could
a. sell government bonds. b. auction more loans to banks. c. increase the reserve requirement. d. None of the above is correct.
Which of the following is used to measure market structure and performance?
A. Dansby-Willig Performance index B. Four-firm concentration ratio C. HHI (Herfindahl-Hirschman index) D. All of the answers are correct.