Refer to the figure below. What is the price elasticity of supply at point B and point C? 
A. 1; 1
B. 3; 2
C. 1/2; 3/4
D. 3/4; 1/2
Answer: A
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Suppose that the government collects $3 million in taxes, pays $2 million in social security benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible
The government's contribution to GDP is A) $0. B) $1 million. C) $3 million. D) $3.5 million.
One way the government decides how to pay for public goods is:
A. how easy it is to exclude people who don't pay. B. determining who uses the good the most and increasing their property taxes. C. comparing individual's marginal benefits of the good. D. polling the public about the most appropriate funding measures.
Under perfect competition, entry of new firms into the market in the long run tends to:
a. raise the aggregate supply. b. raise the level of profit of the existing firms. c. raise the aggregate demand for goods. d. reduce the degree of competitiveness in the market. e. reduce the market power of the existing firms.
The first step in economic analysis is to
a. explore how the equilibrium changes if the constraints change. b. make explicit assumptions about the desirability and the cost of various alternatives. c. apply the equimarginal principle to the problem being considered. d. determine how agents' constraints are interrelated.