Which of the following is a question answered with normative economic reasoning?
A. If the college offers free textbooks for students, will more students read their textbooks?
B. If the college provided less financial aid for out-of-state students, would more in-state students benefit?
C. If the college increased its enrollment requirements, would class size decline?
D. Should the college increase tuition to fund its athletic programs?
Answer: D
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Use the following graph of the demand for steak to answer the question below.
Refer to the above diagram and assume that steak is a normal good. Which of the following would shift the demand for steak from D1 to D3?
A. a decrease in consumer incomes B. a decrease in the price of steak C. an increase in consumer incomes D. an increase in the price of steak
Which of the following is the largest component of the assets of the Federal Reserve?
a. U.S. Treasury deposits b. U.S. government securities c. Foreign exchange d. Time deposits e. Checkable deposits
If price increases 6% and the quantity exchanged increases 4%, what does that tell us about the elasticity of demand? a. Demand is elastic
b. Demand is unit elastic. c. Demand is inelastic. d. It tells us nothing about the elasticity of demand.
Which of the following events, ceteris paribus, would cause a rightward shift in the demand curve for euros?
a. an decrease in the average income of European consumers b. an increase in European tastes for American goods c. an increase in the average income of U.S. consumers d. an increase in U.S. tariffs on European goods