The accompanying graph depicts demand.
At point A, demand is:
A. perfectly elastic.
B. inelastic.
C. elastic.
D. unit elastic.
Answer: C
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When a central bank makes joint decisions with the government's Treasury department,
A) the central bank is asserting its independence. B) the government loses its ability to conduct fiscal policy. C) the central bank risks losing credibility. D) the government enhances its credibility.
With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level,
a. increase exports and decrease imports. b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers. c. increase both exports and imports. d. make foreign goods relatively cheaper to U.S. citizens but U.S. exports will be more expensive to foreign purchasers.
Suppose a sushi restaurant is making significant economic profit in the short run. In the long run
A) more people will open sushi restaurants, reducing the economic profit for each restaurant. B) high barriers to entry keep people from opening sushi restaurants. C) the government will require the sushi restaurant to sell part of its interests in the city. D) more people will open steak restaurants, increasing the economic profit for the sushi restaurant.
Increases in income from other sources than employment can cause the labor ____ curve to shift ____. a. demand; right. b. demand; left
c. supply; right. d. supply; left.