Refer to Table 4.1. A change in the price of hamburgers caused the change in quantity demanded shown in the table. The price elasticity of demand for hamburgers (calculated using the initial value formula) is:
A. 0.25.
B. 0.50.
C. 1.
D. 1.75.
Answer: D
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The nominal interest rate cannot fall below
A) the real interest rate. B) the rate of growth in the money stock. C) 2%. D) zero.
If the price of vanilla ice cream decreases, it is likely that
a. demand for vanilla ice cream will increase b. demand for vanilla ice cream will decrease c. demand for chocolate ice cream will increase d. demand for chocolate ice cream will decrease e. the quantity demanded of vanilla ice cream will decrease
Which of the following statements is not correct?
a. Based on studies of human decision making, most people value fairness. b. Based on studies of human decision making, some people's preference are inconsistent over time. c. Government intervention is the best remedy for the problems caused by asymmetric information. d. Advertising can be an example of a company signaling the quality of its products.
Which of the following statements is correct?
a. NASDAQ is an important stock exchange in the United States. b. The demand for a corporation's stock is largely based on people's perception of the corporation's profitability in the future. c. Compared to the Standard & Poor's 500 Index, the Dow Jones Industrial Average incorporates the stock prices of a much smaller number of corporations. d. All of the above are correct.