Price Elasticity Demand Assignment | Homework For You

40. Which factor influences price elasticity demand?

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a. annual interest rate

b. availability of close substitutes

c. money supply

d. world prices

Homework For You

41. What concept measures how many quantity supplied responds to change in price?

a. value elasticity of supply

b. cross price elasticity of demand

c. income elasticity of demand

d. price elasticity of supply

42. which type of market operation does the federal reserve to increase the money supply when it buys bonds from the public in the nation’s bond market?

a. Closed Market operations

b. Money Market operations

c. Value Market operations

d. Open Market operations

43. If the government increases its purchases by $10 billion the aggregate demand for goods and services could rise by more than $10 billion what does this illustrate?

a. exchange rate effect

b. multiplier effect

c. automatic stabilizer effect

d. crowding out effect

44. which fiscal policy will result in rightward shift of the aggregate demand curve?

a. raising corporate taxes

b. lowering discount rate

c. expanding government purchases

d lowering reserve requirement

46. which two statements describes gross domestic product (GDP). Choose 2

a. GDP is no longer used to monitor performance of the overall economy

b. GDP measures expenditures but not income

c. GDP is the most used measure of a country economic well being

d. GDP measures the market value of all final goods and services

47. A man is willing to pay $300 for a pair of boots and purchases it for $200 what does this indicate?

a. price of the boots will fall due to market forces

b. the producer surplus will be $100

c. the producer surplus will equal the consumer surplus

d. the consumer surplus will be $100

Homework For You

48. A us citizen has been living and working in Canada for the last 10 years. Where is the values of the individuals production counted?

a. US GNP and Canada GNP

b. US GNP and Canada GDP

c. US GDP only

d. US GDP and Canada GDP. Get Economics homework help today

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