If the own P elasticity of D for Krazy Kids shoes is -0.4 and the company raises its P by 10%, what will be the change in quantity demanded of Krazy Kids shoes?
a) +4%
b) -4%
c) +25%
d) -25%
e) -400%
b) -4%
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The careful historian, in studying an institution like slavery and in striving for objectivity, will give special attention to all of the following except
(a) Those processes which recur over time and which continually motivated the institution (b) A theory which provides understanding of the cause-and-effect relationships involved (c) The background conditions of the period (d) All of the above statements must be given special attention
Technological progress means that we produce more output with the same amount of inputs.
Answer the following statement true (T) or false (F)
A reduction in money growth, holding all other factors constant, will cause
A) a reduction in seignorage. B) an increase in seignorage. C) no change in seignorage. D) an ambiguous effect on seignorage.
The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line
A. shifts outward to the right and the vertical and horizontal intercepts will both rise. B. rotates, rising along the vertical axis but falling along the horizontal axis. C. shifts inward to the left and both intercepts will decline. D. none of these.