What is a commitment device?
What will be an ideal response?
A commitment device represent actions that individuals take in one period to try to control their behavior in a future period.
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The Cambridge equation equates money demand as
A) a fraction of nominal GDP. B) a percentage of real GDP. C) a fraction of money supply. D) a ratio of spot exchange rates.
In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48
These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.
If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.
Answer the following statement true (T) or false (F)
Suppose European incomes increase by 4 percent per year, and as a result, U.S. exports of farm goods to Europe rise by less than 4 percent annually. The elasticity that can be computed from this information is the
A. Price elasticity of supply. B. Income elasticity of demand for U.S. farm exports. C. Cross-price elasticity of demand for income with respect to U.S. farm goods. D. Price elasticity of demand.