Residents of Leon County have developed a strong liking for barbeque pork sandwiches. Residents of Bay County buy the same amount of barbeque pork sandwiches but believe beef sandwiches are just about as good. From this, we can infer that
a. residents of Leon County will not care what the price of barbeque pork sandwiches is.
b. compared to residents of Leon County, residents of Bay County will have a smaller price elasticity of demand for barbeque pork sandwiches.
c. compared to residents of Leon County, residents of Bay County will have a larger price elasticity of demand for barbeque pork sandwiches.
d. residents of Leon County will increase their purchases by a larger amount for beef sandwiches than residents of Bay County in response to a "50 cents off" sale on beef sandwiches.
C
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Which of the following is a reason that developing countries are running large surpluses?
A) They are required to do so by IMF. B) They have defaulted on international loans. C) They have pegged exchange rates and thus the growth of exports must drive surplus up. D) They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows. E) They don't know how to manage their surpluses.
The major component of federal government consumption is spending on ________
A) Social Security, Medicare and Medicaid B) foreign aid C) capital goods, e.g. highways and schools D) national defense
Which one of the following is a positive economic statement?
a. An increase in the minimum wage will reduce employment. b. The minimum wage should be increased. c. Social justice will be served by increasing the minimum wage. d. Thoughtful people oppose an increase in the minimum wage.
Which of the following statements about government debt is false?
A. Government has the power to tax to finance its debt. B. Almost half of U.S. government debt is internal to the government. C. Government can create money to finance its debt. D. Most U.S. government debt is owned by foreigners.