When John earned $65,000 he purchased 10 DVDs a year. His income has just increased to $68,000 and he plans to purchase 15 DVDs this year. John's income elasticity of demand equals
A) 0.
B) 0.11.
C) 1.67.
D) 8.87.
D
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What will be an ideal response?
In the aggregate production function, the symbol "A " represents an index of how efficiently the economy transforms capital and labor into real GDP. "A" measures the influence
A) of any factor that determines real GDP. B) of the quantities of capital and labor that determine real GDP. C) of any factor that determines real GDP other than the quantities of capital and labor. D) of the quantities of capital and labor that determine real GDP, holding other factors constant.
In the Cournot model, if one firm increases its output
A) the market will not clear because now there is a surplus. B) the market price drops, reducing the revenues received by the other firms. C) the others will kick it out of the oligopoly. D) the other firms are unaffected.
The Depository Institutions Deregulation Monetary Control Act of 1980
A. enhanced the distinction between banks which are members of the Federal Reserve System and those which are not. B. requires thrift institutions to be subject to the same limitations upon the creation of checkable deposits as are commercial banks. C. prohibited thrift institutions from offering checkable deposits. D. reduced the degree of competition between commercial banks and the thrift institutions.