The lower the level of income in a country, the
A) less income elastic is the demand for food.
B) more income elastic is the demand for food.
C) more negative the income elasticity of the demand for food.
D) Both answers A and C are correct.
E) None of the above is correct.
B
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The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate
A) raising; lowering B) raising; raising C) lowering; lowering D) lowering; raising
All of the following are true regarding the Lanham Act except which one?
A) Civil suits can be filed under the Lanham Act. B) It prohibits trademark infringement. C) It was passed in 1946. D) It does not allow a competitor to sue for marketplace damages.
The persistent U.S. trade deficit with Japan is
a. surprising because one would expect that bilateral trade between two countries with flexible exchange rates would be in balance. b. surprising because the Japanese are high cost producers of many goods that are purchased in large quantities by U.S. consumers. c. not surprising because there is no reason why bilateral trade between two countries should be in balance. d. proof that the trade practices of the Japanese are unfair toward the United States.
Market equilibrium is the point where quantity supplied and ________ are reasonably in balance.
A. market price B. quantity sold C. equilibrium supply D. quantity demanded