Which would be considered an investment according to economists?
a. The purchase of newly-issued shares of stock in Microsoft
b. The sale of government bonds by the nation's central bank
c. The construction of a new computer chip factory by Intel
d. The purchase of shares of stock by Fidelity, a mutual fund company
c. The construction of a new computer chip factory by Intel
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Refer to the scenario above. The price of a basket of goods worth $1 in the U.S. is ________ in Country 1
A) 50 karls B) 5 karls C) 20 karls D) 25 karls
The government of Lithasia has decided to set a minimum price for certain agricultural products in order to safeguard the interests of farmers. This is an example of a ________
A) price floor B) price ceiling C) Pigouvian tax D) Pigouvian subsidy
The real interest rate is:
A. adjusted for inflation. B. the reported interest rate, not adjusted for inflation. C. the interest rate paid to savers. D. the interest rate charged to borrowers.
An extreme case where either the quantity demanded (Qd) or supplied (Qs) changes by an infinite amount in response to any change in price is called:
a. perfect elasticity. b. imperfect elasticity. c. strong elasticity. d. weak elasticity.