Absolute price elasticities are calculated for four goods, and the values are: 0.009; 1.0; 3.5; and 4. Which indicates the most price-responsive situation?
A. 4.0
B. 0.009
C. 3.5
D. 1.0
Answer: A
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The demand for one money is the supply of another money
Indicate whether the statement is true or false
Buying electricity off the freewheeling grid at one quarter 'til the hour for delivery on the hour illustrates:
a. relational contracts with distributors b. vertical requirements contracts c. spot market transactions d. variable price agreements
Figure 34-7
?
In Figure 34-7, where AB represents the production possibilities of Pestoland and CD the production possibilities of Pastaland, Pastaland is
A. better at producing pasta and pesto than Pestoland. B. better at producing pasta, but relatively inefficient in producing pesto. C. relatively better at producing pasta than pesto. D. relatively better at producing pesto than pasta.
An open market sale of government securities by the Fed will cause which of the following?
A. an excess quantity of reserves demanded and a reduction in the federal funds rate B. an excess quantity of reserves demanded and an increase in the federal funds rate C. an excess quantity of reserves supplied and an increase in the federal funds rate D. an excess quantity of reserves supplied and a reduction in the federal funds rate