When a household takes extra (unbudgeted) money on a trip, economists would classify this money as held for a(n):
a. speculative demand.
b. transactions demand.
c. emergency motive.
d. precautionary demand.
e. inflationary motive.
d
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A fall in the price of cabbage from $10.50 to $9.50 per bushel increases the quantity demanded from 18,800 to 21,200 bushels. The price elasticity of demand is
A) 0.80. B) 1.20. C) 1.25. D) 8.00.
Inflation has never been a major problem in the U.S
a. True b. False
If a greater portion of income is distributed to those in the highest income quintile, the
A. Gini coefficient is less than zero. B. Lorenz curve sags below the diagonal line of absolute equality. C. Lorenz curve is a straight line. D. Line of equality sags below the Lorenz curve.
We currently run a negative trade balance in ______ and a ______ trade balance in services.
Fill in the blank(s) with the appropriate word(s).