The price of old baseball cards rises rapidly with increases in demand because:
A. the supply of old baseball cards is price inelastic.
B. the supply of old baseball cards in price elastic.
C. the demand for old baseball cards is price inelastic.
D. the demand for old baseball cards is price elastic.
Answer: A
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In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve, a celebrity's estate
A) will probably not be successful, since there are no laws regulating this kind of use in the United States. B) will most likely be more successful in developing countries than in high-income countries, since property regulations are better enforced in developing countries. C) can rely on U.S. laws that protect intellectual property rights to prevent the unauthorized use of his image. D) will have to be granted a patent declaring the celebrity's image a new product, and this will give the estate protection for 7 years.
Price elasticity of demand is defined as
A) the percentage change in the quantity demanded of some product resulting from a one percent change in price. B) the percentage change in the quantity demanded of some product resulting from a change in price. C) the change in quantity demanded resulting from a one percent change in price. D) the change in quantity demanded resulting from a change in price.
When private ownership of a resource is clearly defined and enforced, the private owner
a. has little incentive to consider the wishes of others when deciding how to employ the resource. b. has little incentive to use the resource wisely. c. has a strong incentive to consume the resource during the period rather than conserving it for the future. d. has a strong incentive to use the resource wisely.
In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?
a. Inflation fell and unemployment fell. b. Inflation and unemployment were both unaffected. c. Inflation fell and unemployment increased. d. Inflation fell and unemployment was unchanged.