If demand is inelastic, the absolute value of the price elasticity of demand is
A) less than one.
B) greater than one.
C) one.
D) greater than the absolute value of the slope of the demand curve.
A
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Holding the expected return on bonds constant, an increase in the expected return on common stocks would ________ the demand for bonds, shifting the demand curve to the ________
A) decrease; left B) decrease; right C) increase; left D) increase; right
William engages in an activity that influences the well-being of a bystander. In which of the following instances does an externality arise?
a. The impact of William's activity on the bystander is adverse, and William compensates the bystander accordingly. b. The impact of William's activity on the bystander is adverse, but William fails to compensate the bystander. c. The impact of William's activity on the bystander is beneficial and the bystander compensates William accordingly. d. Externalities arise in all of the above cases.
Ray has taken out a home equity loan so that he can redo his kitchen. Every month until the loan is paid off, Ray will make a payment to his bank. This best illustrates money’s function as a ______.
a. unit of account b. medium of exchange c. means of deferred payment d. store of value
According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?
A. 4 B. 5 C. 6 D. 7