If a tripling of price triples the quantity of a good supplied, the price elasticity of supply for this good is
a. 3
b. 300
c. 1
d. –1
e. –3
C
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Which of the following is NOT a normative standard for income distribution?
A) the productivity standard B) the egalitarian principle C) rewarding people according to merit D) All of the above are normative standards.
In the case of nonexcludable goods, economists contend that the market ___________ produce these goods because of the ________________________
A) will; free rider problem B) will not; law of diminishing marginal utility C) will not; law of diminishing marginal returns D) will not; free rider problem.
If a bank has demand deposits of $100 million, how much are its required reserves?
What will be an ideal response?
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline