Banks can lower the cost of information production by applying one information resource to many different services. This process is called
A) economies of scale.
B) asset transformation.
C) economies of scope.
D) asymmetric information.
C
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Use the above figure. This graph is known as
A) the Laffer curve. B) the short-run Phillips curve. C) the NAIRU relationship. D) the Keynesian curve.
The price elasticity of demand for eggs is .27 and the price elasticity of demand for soft drinks is .70. Therefore, the demand for eggs
A. is more elastic. B. is less elastic. C. cannot be compared to the demand for soft drinks because both are negative. D. cannot be compared to the demand for soft drinks because eggs cannot be substituted for soft drinks.
When the optimal quantity of consumption is zero for a given good:
A. a ban is often the best solution. B. changing social norms is often the best solution. C. privatizing the good is often the best solution. D. government provision of the good is often the best solution.
The marginal propensity to consume (MPC) is defined to be:
A. the change in consumption divided by the change in disposable income. B. total income divided by total consumption. C. total consumption divided by the change in disposable income. D. the change in consumption divided by total disposable income.