For which of the following would the absolute price elasticity of demand be greatest?
A. salt
B. Dr. Pepper cola
C. tickets to the Super Bowl
D. gasoline
Answer: B
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The U.S. Census Bureau estimates the number of illegal immigrants by subtracting the:
A. Sum of the past annual flows of legal immigrants from the past annual inflows of all immigrants B. Current number of legal immigrants from the current total number of all immigrants C. Current of legal immigrants from the past annual inflows of all immigrants D. Sum of the past annual flows of legal immigrants from the current total number of all immigrants
The real interest rate for investments reflects not only the short-term real interest rate set by the central bank, but also the financial frictions
When the policy rate has hit the floor of zero, to stimulate the economy at given inflation rates, policymakers can A) lower the financial frictions. B) lower the short-term real interest rate. C) lower both the short-term real interest rate and the financial frictions. D) lower the policy rate.
A market with four firms in competition with each other has a equilibrium price of $6 and equilibrium quantity of 100,000. If the four firms form a cartel, the cartel, set price will be ________ than $6 and the set quantity will be ________ than 100,000.
A) greater; less B) less; greater C) greater; greater D) less; less
Which of the following is not a cost of decentralization of corporate decisionmaking?
A. More effective use of local knowledge B. Less effective use of central information C. Coordination costs and failures D. Incentive problems