The price elasticity of supply for the Hope Diamond is zero because there is only one. Therefore, the supply curve for the Hope Diamond is
A. perfectly inelastic.
B. unit elastic.
C. elastic.
D. perfectly elastic.
Answer: A
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A safety measure whose benefits outweigh its costs is called a ________
Fill in the blank(s) with correct word
Using the cash balance version of the quantity theory with k = .2, an increase in the money supply of $100 billion leads to an increase in GDP of
A) $500 billion. B) $100 billion. C) $50 billion. D) $20 billion.
The market demand for MP3 players is p = 50 - 0.5Q, and the marginal cost for an MP3 player is $10. If Nick receives 60% of the total profit, then
A) Nick will produce 50 MP3 players. B) Nick receives $500 as profit. C) total profit is $800. D) the efficiency in production is not achieved.
If a borrower and lender agree to an interest rate on a loan when inflation is expected to be 7 percent and inflation turns out to be 10 percent over the life of the loan, then the borrower ________ and the lender ________.
A. gains; loses B. loses; gains C. is not affected; gains D. gains; gains