Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at an airport is likely to be ________ the price elasticity of demand for a Snickers candy bar at the grocery store.
A. greater than
B. equal to
C. the reciprocal of
D. less than
Answer: D
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Which monetary policy rule needs a stable demand for money to work well?
A) inflation targeting rule B) nominal GDP targeting rule C) k-percent rule D) discretionary monetary policy E) monetary base instrument rule
Referring to the graph above, an economic variable that had peaked in December 1912, and July 1918 is likely a ________ variable
A) leading countercyclical B) leading procyclical C) lagging countercyclical D) lagging procyclical E) none of the above
All these factors can lead to economies of scale in production, except:
a. division of labor that helps in specialization. b. merger of two firms. c. hiring larger machines which are more efficient than the smaller ones. d. increase in overhead expenses. e. research and development.
Changes in expectations or opportunity costs
A. Do not shift the bond supply and demand curves. B. Shift the bond supply curve but not the bond demand curve. C. Shift the bond demand curve but not the bond supply curve. D. Shift the bond supply and demand curves.