If you expect the price of gas to fall within a week, you will Question 3 options:
A. decrease your future demand for gas, because the expected price is relatively lower.
B. decrease your future demand for gas, because the actual price of gas is relatively higher.
C. increase your present demand for gas, filling up the gas tank of your car as soon as possible.
D. decrease your present demand for gas, postponing going to the gas station until next week.
D. decrease your present demand for gas, postponing going to the gas station until next week.
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If the quantity demanded changes by an infinitely large amount for a given change in price, then demand is
A) perfectly inelastic. B) perfectly elastic. C) elastic. D) inelastic.
The best definition of inflation is a(n):
a. temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar.
The Fed is institutionally independent. A major disadvantage of this is that monetary policy
a. will always be coordinated with fiscal policy. b. is not subject to democratic control as other policies are. c. will never offset fiscal policy. d. cannot be changed once it has been instituted.
Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Because the restaurant industry is considered monopolistic competition, it is expected that in the long run, restaurant franchise owners earn
A. zero economic profits. B. positive economic profits. C. zero accounting profits. D. negative accounting profits.