Demand is (more elastic / less elastic) in the short run than in the long run
A. (less elastic) because goods account for a smaller percentage of the consumer's budget in the short run than in the long run.
B. (less elastic) because consumers have less time to adapt to a price change in the short run than in the long run.
C. (more elastic) because consumers have less time to adapt to a price change in the short run than in the long run.
D. (more elastic) because goods account for a larger percentage of the consumer's budget in the short run than in the long run.
Answer: B
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All other things held constant, premiums on options will increase when the
A) exercise price increases. B) volatility of the underlying asset increases. C) term to maturity decreases. D) futures price increases.
The benefit of the production of capital is
a. decreased current production of consumption goods b. increased future production of consumption goods c. the amount of roundabout production d. abundant capital accumulation e. the decreased amount of future capital available
Which one of the following items would be the most liquid?
a. Pizza. b. Ticket to next week's basketball game. c. Stereo. d. Dollar bill. e. U.S. savings bond.
When Marxist economists look at labor markets, they:
A. focus on the tensions among social classes and generally see exploitation of workers by capitalists. B. see individuals using government to protect their monopolies. C. capture the same aspects of reality that are captured by other economists. D. generally see supply and demand forces leading to equilibrium.