Every time the Fed buys or sells on the open market, the __________ changes
A) budget deficit
B) income tax rate
C) money supply
D) a and b
E) a, b, and c
C
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If wages are "sticky downwards", then this means that during periods of high unemployment, wages will:
A. fall quickly. B. resist falling. C. resist rising. D. rise quickly.
If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance company believes that the probability of someone in that age bracket dying this year would be
A) 0. B) .001. C) .0001. D) 1,000.
Demand is (more elastic / less elastic) in the short run than in the long run
A. (less elastic) because goods account for a smaller percentage of the consumer's budget in the short run than in the long run. B. (less elastic) because consumers have less time to adapt to a price change in the short run than in the long run. C. (more elastic) because consumers have less time to adapt to a price change in the short run than in the long run. D. (more elastic) because goods account for a larger percentage of the consumer's budget in the short run than in the long run.
"Price elasticity measures how many more units of a good that consumers will buy given a decrease in price." Do you agree or disagree? Explain
What will be an ideal response?