A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold the same amount of milk per week (165 gallons). Since everything else remained the same, we would say the
a. demand for milk is perfectly elastic
b. demand for milk is elastic
c. demand for milk is perfectly inelastic
d. demand for milk is unitary elastic
e. law of supply does not apply in this situation
C
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Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:
a. above the labor supply curve under perfect competition. b. the market supply curve of labor. c. below the labor supply curve under perfect competition. d. changed because workers are now more willing to supply labor. e. perfectly horizontal.
If a country's purchases of foreign assets exceeds foreign purchases of domestic assets, that country has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.
Say that after graduation you live in Manhattan and you walk to work. Then, you got a raise and you take a taxi most days. As a result, GDP would most likely ___.
A. fall B. be unchanged C. rise
Command-and-control policies:
A. allow a low-cost firm to abate more pollution. B. encourage firms to develop more efficient abatement technologies. C. usually result in relatively low compliance costs. D. allow us to predict the total amount of pollution that will be discharged.