The absolute price elasticity of demand for a product for which annual expenditures make up a very small share of a typical consumer's budget is probably
A) less than 1.
B) equal to 1.
C) greater than 1.
D) infinity.
A
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As the money wage rate increases,
A) potential GDP increases. B) potential GDP decreases. C) aggregate supply increases. D) aggregate supply decreases. E) aggregate supply and potential GDP do not change.
Banks are considered a safer place to deposit money now than they were prior to 1933 because
a. gold reserves have increased. b. reserve requirements are higher. c. the creation of the FDIC reduced the likelihood of bank runs. d. the commercial banks are no longer permitted to extend loans to the Federal Government.
Hasan eats two slices of pizza. What is the total utility of these two slices?
a. 8
b. 10
c. 18
d. 24
The question "Should children receive free lunch at school?" is an example of which fundamental economic question?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.