The demand for bus rides is a downward-sloping straight line demand curve. The price elasticity of demand for bus rides ________
A) increases as the price of a bus ride falls
B) decreases as the price of a bus ride falls
C) is the same no matter what the price of a bus ride
D) decreases as the price of a bus ride rises
B
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In the market for reserves, a lower interest rate paid on excess reserves
A) decreases the supply of reserves. B) increases the supply of reserves. C) decreases the effective floor for the federal funds rate. D) increases the effective floor for the federal funds rate.
Which of the following is the largest measure of money in the United States?
A) Federal Reserve notes B) definitive money C) M1 D) M2
Under a system of private property, could a 60-year-old owner of a tree farm benefit by planting and caring for
a. No, the farmer will be dead before the crop will be ready for harvest. b. No, the value of the farmer's land will decline since he is taking it out of production for the next 50 years. c. Yes, the farmer will benefit because this action will increase the value of the land if and when the farmer decides to sell. d. Yes, but only if the project is subsidized by the government or private conservation groups.
If memberships in health clubs and hospital fitness centers are substitutes and the price of health club memberships rises, what will happen?
A. Demand for health club memberships will fall. B. Demand for health club memberships will rise. C. Demand for hospital fitness center memberships will rise. D. Demand for hospital fitness center memberships will fall.