Consider Sam and Linda both drive a relatively inefficient sport utility vehicle (SUV). Sam has a lease that doesn't expire for three years whereas Linda owns her sport utility vehicle free and clear
If the price of gasoline was to increase by fifty percent, which of these statements is most likely true? A) Linda will have a less elastic response than Sam.
B) Sam will have a less elastic response than Linda.
C) Sam and Linda will have identically elastic responses.
D) Sam will have a more elastic response than Linda.
B
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The tax cut of 1964 (proposed by President Kennedy): a. was the last time fiscal policy was used
b. was the greatest failure as a demand-management tool. c. actually increased investment, consumption, and employment. d. shifted the aggregate demand curve leftward. e. was the first time the focus moved away from managing aggregate demand to focusing exclusively on aggregate supply.
What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars. b. The Canadian monetary base falls. The amount depends on the size of the money multiplier c. The Canadian monetary base might fall or rise. d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars. e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.
Long-run equilibrium for a perfectly competitive industry occurs when:
A. P = MC = ATC. B. P = MC = AVC. C. P = MC = AFC. D. P > MC = ATC.
Which of the following would be categorized as "land"?
A. timber B. buildings C. human capital D. entrepreneurship