During a stock market bubble, the price/earnings [P/E] ratio:
a. hits high levels.
b. falls to zero.
c. becomes negative.
d. remains constant.
e. declines to a very low level.
a
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Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to
A) 0.8. B) 1.8. C) 1.1. D) 0.9.
The production-based method of national accounting sums up:
A) the total revenue earned by all the firms in the economy. B) the value that is added by each domestic firm in the production process. C) the income earned by each factor of production for participating in the production process. D) the expenditure incurred by domestic and foreign economic agents on domestic products. Infi Cor
Answer the following statements true (T) or false (F)
1. The measure of elasticity will be the same at any place along a given straight-line, slanted demand curve. 2. If 1,000 units of a particular good would be purchased at 40 cents per unit but only 750 units would be purchased at 50 cents per unit, the demand for the good is inelastic. 3. Graphically, perfectly elastic demand is represented by a straight horizontal line. 4. It is possible for a change in the price of one commodity to lead to a change in the demand for another commodity. 5. Any time the market price moves away from its equilibrium position to a lower price, market action will tend to force it further away from its original equilibrium position.
The "marginal rate of substitution" between two goods is measured by:
A) the ratio of the market prices of the two goods. B) the number of units of a good consumed divided by the market price of the other good. C) the number of units of one good a consumer would give up to consume one more unit of another good, while holding total utility constant. D) the consumer's budget constraint divided by the price of each good.