If the quantity of higher education demanded rises by 5 percent when incomes rise by 10 percent,
a. higher education is a normal good
b. higher education is an inferior good
c. the demand for higher education is price elastic
d. the law of demand applies to higher education
e. the demand for higher education is price inelastic
A
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
One of the essential functions that a bank performs is
A) transferring money from savers to lenders. B) owning assets like real estate. C) purchasing government bonds. D) creating deposits by lending required reserves.
Voluntary trade promotes economic progress because
A) it discourages trade based on the comparative advantage of suppliers. B) This is a trick question; voluntary exchange does not promote economic progress. C) it moves goods, services and resources from people who value them less to individuals who value them more. D) it discourages businesses from seeking lower per-unit costs through adoption of mass production methods.
The per se rule was an antitrust law guideline that emphasized ____ over ____.
A. price; quantity B. quantity; price C. behavior; size D. size; behavior