Most college courses have a required textbook. Previously, textbooks were only available through the campus bookstore, but now, these texts can be purchased from online retailers, other bookstores, or students can buy an electronic version of the
text. Because of this, we can predict the price elasticity of demand for textbooks from the campus bookstore is ________. A) increasing
B) decreasing
C) staying the same
D) increasing and then decreasing
A
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The Business Cycle Dating Committee defines a recession as
A) a significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months. B) two consecutive quarters of declining real GDP. C) a significant decline in inflation and unemployment lasting more than a few months. D) two consecutive quarters of declining nominal GDP.
Income elasticity measures how a good's quantity demanded responds to
A) producers' incomes. B) change in buyers' incomes. C) change in the price of another good. D) change in the goods price.
In general does international diversification benefit investors?
A) yes, because it allows them to diversify their risk across many countries B) no, because it creates the additional problem of country risk C) yes, because it enables much greater profits through arbitrage opportunities D) no, because it subjects them to legal regulation in additional markets
Why is the Big Mac a good indicator of purchasing power parity?
What will be an ideal response?