The following are all final goods EXCEPT
A) flour used by the baker to make cupcakes.
B) bread eaten by a family for lunch.
C) pencils used by a 6th grader in class.
D) Nike shoes used by a basketball player.
E) a computer used by Intel to design new computer chips.
A
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The income elasticity of demand for all goods taken together must be
A) zero. B) -1. C) +1. D) between 0 and 1.
Its lunch time, you are hungry and would like to have some pizza. By the law of diminishing marginal value,
a. you would pay more for your first slice of pizza than your second b. you would pay more for your second slice of pizza than your first c. you would pay an equal amount of money for both the slices since they are identical d. none of the above
A surplus means a(n):
a. excess demand for this product. b. situation where the current market price is too low. c. situation where the quantity demanded exceeds the quantity supplied. d. situation where the quantity supplied is less than the quantity demanded. e. excess supply of the product at the current price.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls, and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.