If the income elasticity of demand for a Snickers bar is 0.59, then we know that within the relevant price range for Snickers bars, it is
a. price elastic
b. price inelastic
c. income inelastic
d. income elastic
e. according to the economist's definition of inferior, an inferior good
C
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An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate B) an excess quantity of reserves demanded and an increase in the federal funds rate C) an excess quantity of reserves demanded and a reduction in the federal funds rate D) an excess quantity of reserves supplied and an increase in the federal funds rate
A savings bank is a depository institution that ________
A) sells shares which it uses to purchase shares in U.S. Treasury bills B) makes mostly home-purchase loans C) is owned by a social or economic group D) makes mostly consumer loans
"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes
What will be an ideal response?
Limits on the quantity of a foreign good that can be imported into the domestic market are
A. import capacity limits. B. import quotas. C. tariffs. D. export quotas.