When hamburger is $3 per pound, Ms. Rush buys 6 pounds. When hamburger is $2 per pound, Ms. Rush buys 10 pounds. Describe Ms. Rush's demand between these two prices
A) elastic
B) unit elastic
C) inelastic
D) perfectly inelastic
E) perfectly elastic
A
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An increase in aggregate expenditure has what result on equilibrium GDP?
A) Equilibrium GDP falls. B) Equilibrium GDP rises. C) Equilibrium GDP is not affected by an increase in aggregate expenditure. D) Equilibrium GDP may rise or fall depending on the size of the increase in aggregate expenditure relative to the initial level of GDP.
Which of these trends in the nominal and real interest rates has been observed in the U.S. economy? a. During the recession of 2009, the nominal interest rate was almost equal to the real interest rate. b. In the mid 1970s, the nominal interest rate
was very low while the real interest rate was very high. c. In the mid 1990s, the nominal interest rate was almost equal to the real interest rate. d. In the 1980s, the real interest rate was very low while the nominal interest rate was very high.
If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me," you would attribute this to the
A. asset substitution effect. B. induced retirement effect. C. slovenly effect. D. bequest effect.
Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine. In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine
a. What is the opportunity cost of producing a gallon of wine for Germany? b. What is the opportunity cost of producing a gallon of wine for Italy? c. Which country has a comparative advantage in the production of beer? d. Which country has a comparative advantage in the production of wine?