Which of the following has the greatest difference between short-run and long-run price elasticities of demand?
a. automobiles
b. jewelry
c. movies
d. salt
c. movies
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Bank One has reserves of $100,000, government securities of $200,000, loans of $700,000, and checkable deposits of $800,000. If the desired reserve ratio is 10 percent, Bank One can make additional loans totaling
A) $0.00. B) $10,000. C) $20,000. D) $80,000. E) $100,000.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price. What is the profit maximizing quantity produced and what is the price charged?
A) Q = 480 units; P = $16 B) Q = 240 units; P = $28 C) Q = 560 units; P = $12 D) Q = 320 units; P = $24
The immediate effect of increased population growth, with real GDP growth unchanged, is to
A) reduce economic growth by reducing per capita real GDP. B) increase economic growth by stimulating more saving. C) increase economic growth by boosting the capital stock. D) leave economic growth unchanged.
When economists hold factors other than the one they are analyzing constant, they are demonstrating the principle of
a. circular flow analysis b. consumer sovereignty c. ceteris paribus d. normative economics e. scarcity modification