According to the permanent income hypothesis, permanent income is to ________ as transitory income is to ________

A) consumption; saving
B) certain; hypothetical
C) wealth; gambling
D) saving; borrowing


A

Economics

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After a price floor of $23 is placed on the market in the graph shown, which area represents total surplus?



A. A
B. B + C + E + F
C. A + B + E
D. A + B + C + E + F

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Under a fractional reserve banking system, banks have reserves of only a fraction of their total deposits

a. True b. False Indicate whether the statement is true or false

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An example of a nontradable good is:

A. insurance services. B. fresh pizza. C. a double-decker bus tour of London. D. All of these would be considered a nontradable good.

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Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase revenue?

a. 0 b. 0.4 c. 1 d. 4

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