Leakages from the circular flow include saving and imports

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Total utility is the benefit received from consuming an extra unit of a good

Indicate whether the statement is true or false

Economics

Jill Borts believes that the price elasticity of demand for her economics textbook is relatively inelastic. She argues "I was told I had to purchase a book written by Hubbard and O'Brien that is required by my instructor

If I wanted to buy a mystery novel I would have many authors to choose from. Therefore, the demand for mystery novels is more elastic than the demand for my textbook." Is Jill correct? A) She is correct that the textbook has a more inelastic demand, but that is because most students pay for their textbooks with credit cards. Most people pay for novels and other books with debit cards. B) She is correct. C) She is confused. She should have concluded that the textbook has a more elastic demand than a novel. D) The demand for the textbook is more inelastic, but Jill's reasoning is incorrect. The reason the textbook has an inelastic demand is that it is more expensive than any novel.

Economics

An unexpected rise in the Producer Price Index should send bond prices __________ and stock prices __________

A) up; up B) up; down C) down; up D) down; down

Economics

In a system of flexible exchange rates, expansionary monetary policy abroad would induce

a. a rise in the U.S. exchange rate. b. a fall in the U.S. rate of exchange. c. a balance of payments surplus for the United States. d. no change in U.S. exchange rates.

Economics