Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent
A) 5
B) 3.5
C) 4.5
D) 4
E) none of the above
A
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A good for which demand decreases when income increases is known as a(n) ________ good
A) normal B) inferior C) substitute D) complementary
A new pollution law requires businesses to pay for inspections of their plants by independent pollution-monitoring firms. What effect is this likely to have?
A) Increase productivity B) Increase the capital stock C) Reduce productivity D) Increase the demand for labor in those firms
If you pay a premium of 10 cents per bushel for a Corn put option with a strike price of $6.60, what's the most you can lose?
A. $0.10/bu B. $6.60/bu C. $6.70/bu D. Your potential loss is unlimited
The demand for a product is likely to be more elastic
A. the shorter the time the consumer has to adjust to price changes. B. the lower the price of the good. C. the fewer the number of good substitutes. D. the less the essential nature of the good.