Economists focus on the effect of changes in income and prices in influencing actual consumer purchases.
Answer the following statement true (T) or false (F)
True
Sociologists may focus on what creates desires, but economists focus on how changes in income and prices affect consumer purchases.
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The more variable a firm's demand, the ________ the loss from uncertainty, which means the firm has ________ to gain from a forecast.
A) smaller; less B) smaller; more C) larger; less D) larger; more
Any bank that uses deposits to make loans: a. operates on a 100 percent reserve system
b. operates on a fractional reserve system. c. does not operate on a reserve system. d. does not keep reserves in its vaults. e. charges an interest rate determined by the reserve ratio.
An example of U.S. foreign direct investment would be a:
A. factory in Japan owned by a Canadian citizen. B. factory in Canada owned by a U.S. citizen. C. factory in New Mexico owned by a Japanese citizen. D. All of these are examples of foreign direct investment.
The price elasticity of demand is generally
What will be an ideal response?