Publishers charge much higher prices for a book in hardcover than for the same book in paper cover because
A) the demand for hardcover books is less elastic at the same price.
B) the marginal cost of attaching hardcovers is very high.
C) there are larger sunk costs in the production of hardcover editions.
D) they have less bargaining power against bookstores in marketing paperback editions.
E) they want to subsidize students.
A
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If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the long run the SRPC ________ and the LRPC ________
A) shifts downward; shifts leftward B) does not change; shifts rightward C) shifts upward; does not change D) shifts downward; does not change E) does not change; does not change
The discount rate is the rate of interest charged when banks lend excess reserves to one another.
a. true b. false
If price was set by the government at $4, there would be a price _____________, that would cause a ___________ of _______ units.
A. floor; surplus; 8
B. floor; surplus; 10
C. ceiling; shortage; 8
D. ceiling; shortage; 12
According to the Classical growth model, the most important source of economic growth is:
A. increasing returns to scale. B. population growth. C. capital accumulation. D. technological development.