If the price of a good falls by 10% and the percentage decrease in the total amount consumers spend on the good is 10%, then the good is
A. unit elastic.
B. elastic.
C. inelastic.
D. perfectly inelastic.
Answer: C
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Tobin's q theory suggests that monetary policy may affect investment spending through its impact on
A) stock prices. B) interest rates. C) bond prices. D) cash flow.
The stock market provides two functions for corporate financing: reducing investors’ risk and setting the prices of stocks.
Answer the following statement true (T) or false (F)
A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:
a. 35. b. 50. c. 70. d. 350.
Exhibit 1A-8 Straight line relationship
For the relationship shown in Exhibit 1A-8, suppose the price of hamburgers increases and hamburgers are a substitute for pizza. What change would occur on the graph?
A. There will be a movement upward and to the left along the curve. B. There will be a movement downward and to the right along the curve. C. The curve will shift. D. The slope of the curve will become steeper.