If you asked a classical economist which economic time frame she prioritized, how might she respond?
A) "Prices tend to be sticky when supply or demand changes."
B) "Savings is a drain on aggregate demand."
C) "The economy tends toward instability and cyclical unemployment."
D) "The long run is key."
E) "The short run is key."
Answer: D) "The long run is key."
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Use the information in Scenario 4.2. What is the price elasticity of demand if the price of artichokes is $10?
A) 0 B) -0.25 C) -1 D) -4 E) negative infinity
A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil. b. fixed in terms of gold, thus creating flexible exchange rates between countries. c. fixed in terms of gold, thus creating fixed exchange rates between countries. d. allowed to fluctuate based on the values of different currencies. e. fixed, based on the values of different currencies, in terms of some commodity.
Brian is the sole proprietor owner of Long Voyage Software, which writes programs to generate maps for wilderness trips. He started the business with an initial investment of $80,000 . A faulty map caused one customer to get hopelessly lost. After her rescue and recuperation, she sued Long Voyage Software for $5,000,000 . Which of the following is true? a. The customer can be awarded only
$80,000—what the firm has available to pay. b. The customer can be awarded $5,000,000 . but can get only $80,000. c. The customer can be awarded $5,000,000 . but Brian personally won't have to pay more than $80,000. d. If $5,000,000 is awarded, Brian will have to pay none of it. e. If $5,000,000 is awarded, Brian is personally responsible for paying all of it.
Which of the following is not correct?
a. Poverty is correlated with race. b. Poverty is correlated with age. c. Poverty is correlated with family composition. d. All of the above are correct.