Other things remaining the same, a decrease in inflationary expectations causes the velocity of money to:
a. Rise.
b. Fall.
c. Not change.
.B
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The U.S. demand for foreign cars has increased dramatically since the early 1900s because
(a) Americans perceive foreign cars as lower quality cars than U.S.-produced cars. (b) foreign producers are manufacturing relatively fuel-efficient cars. (c) U.S. consumer demand for large, fuel inefficient cars has increased. (d) of all of the above reasons.
Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?
a. an elastic demand for the goods produced by union labor b. weak foreign competition for the product union labor helps to produce c. high tariffs on goods produced by the union labor d. favoritism in the allocation of government contracts to firms that employ union labor
An increase in the price of a good is shown by a:
A. movement up and to the left along the supply curve. B. movement down and to the right along the supply curve. C. movement up and to the right along the supply curve. D. movement down and to the left along the supply curve.
Which is NOT a determinant of the elasticity of demand?
A. The proportion of income consumers spend on the good B. The number of sellers C. The availability of substitutes D. Time