If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4 respectively, she would maximize her satisfaction by purchasing:
A. 3 units of J and 3 units of K.
B. 1 unit of J and 3 units of K.
C. 4 units of J and 1 unit of K.
D. 2 units of J and 3 units of K.
Answer: D. 2 units of J and 3 units of K.
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A) always equal to the equilibrium quantity. B) independent of the price of the good. C) the amount of a good that consumers plan to purchase at a particular price. D) independent of consumers' buying plans.
Elasticities are used to measure responses to a change in:
A. the price of a good. B. the price of a related good. C. income. D. All of these are true.
The measure of final goods and services produced in the United States is the
A. Per capita GDP in the United States. B. Total sales of all goods during the year. C. GDP of the United States. D. Percentage change in the GDP of the United States.
If the required reserve ratio is RR, the simple deposit multiplier is defined as
A) . B) . C) × change in bank reserves. D) × change in bank reserves.