If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then
A) the price elasticity of demand is 0.44.
B) A is a complementary good.
C) the price elasticity of demand is
D) A is an inferior good.
Answer: C) the price elasticity of demand is
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A) lowers tax rates B) increases interest rates C) increases tax rates D) lowers interest rates
The fundamental force driving international trade is comparative _______
A. advantage: a country exports those goods that have high prices B. abundance: the country that produces more than it needs exports the good C. advantage: the country with the lower opportunity cost of production exports the good D. cost: a country trades with other countries that produce cheaper goods
According to Baumol and Blinder, recognition of the usefulness of markets
a. labels a person as an apologist (defender) of capital. b. extends to some socialist countries, for example, China. c. should make totally free markets good for any society. d. makes one a radical.
Which of the following is responsible for holding bank reserves?
A. The Federal Reserve Board of Governors. B. The 12 regional Federal Reserve banks. C. The Executive Branch of government. D. The Fed chairman.