If a consumer's total expenditure on a good does not vary with price, then that consumer's demand curve is unit elastic over that range of prices
a. True
b. False
Indicate whether the statement is true or false
True
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A $100 annuity is
a. $100 received in a single year b. $100 received each year forever c. more or less than $100, dependent on the interest rate, received for a certain number of years d. $100 received each year for a certain number of years e. more or less than $100, dependent on the interest rate, received until an upper limit is reached
When you buy a new car, the dealer presents you with a set of keys and you drive away into the sunset. What would you do if, after agreeing to a price for the car, the dealer told you that a set of keys would cost an additional $5? What does this tell you about the price elasticity of demand for car keys? Explain
In a free market economy,
A. problems with externalities can never be solved. B. public goods will be efficiently provided by the private sector. C. detrimental externalities are rare. D. externalities can be solved by policy makers using market methods.
If the future rate equals the spot rate, then in equilibrium:
a. the exchange rate must depreciate. b. interest rates should be different. c. the exchange rate will appreciate. d. None of these will occur.