If John purchases 10 percent more compact discs when his income increases 5 percent, then:
a. his total expenditure on compact discs will fall as his income increases.
b. compact discs would be classified as an inferior good.
c. compact discs would be price elastic.
d. compact discs would be income inelastic.
e. compact discs would be income elastic.
e
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The intuition behind the budget constraint is that
A) more options are preferred to less. B) money is the root of all happiness. C) information is power. D) scarcity is avoidable with prosperity.
If oligopolists engaged in some sort of collusion, industry output would be __________ and the price would be __________ than under perfect competition
a. smaller, lower b. smaller, higher c. smaller, no different d. greater, lower e. greater, higher
The different stages of production of any commodity can be said to possess high volumetric interdependence if the output produced in any one of the stages affects the output produced during the subsequent stages
Indicate whether the statement is true or false
Which of the following is an instrument of monetary policy?
A. The budget deficit B. The discount rate C. The mortgage interest rate D. The interest rate on three-month Treasury bills