If the demand curve for gasoline is relatively steep, then
a. higher gasoline prices would cause a large number of people to stop driving.
b. the law of demand does not hold for gasoline.
c. shifts in the supply curve for gasoline will have relatively little effect on the price of gasoline.
d. the price of gasoline has relatively little effect on drivers' decision to buy gasoline.
d. the price of gasoline has relatively little effect on drivers' decision to buy gasoline.
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Potential output:
A. is purely a physical phenomenon. B. requires the purchase of new equipment. C. is related to the long-term growth trend. D. requires government expenditures.
The Federal Deposit Insurance Corporation
A. insures the open market operations of the Fed. B. insures the deposits held by the Fed. C. insures banks against lawsuits by depositors. D. insures the deposits held in banks.
Give examples of block pricing, bundling, price discrimination and two-part tariffs.
What will be an ideal response?
Suppose the two countries can trade shares in the ownership of their perspective assets. Further assume that a Home owner of a 25 percent share in Foreign land
He will receive 25 percent share in Foreign land and thus receives 25 percent of the annual Foreign kiwi fruit harvest. Further assume that also that a Foreign owner of a 25 percent share in Home land is permitted. In this case, a Foreigner is entitled to 25 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor.