An individual with a highly elastic demand for gasoline will:
A. stop using gasoline entirely if a tax is imposed.
B. refuse to cut consumption for any reason.
C. cut consumption more than an individual with a highly inelastic demand when price goes up.
D. cut consumption less than an individual with a highly inelastic demand when price goes up.
Answer: C
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The facts show that the political business cycle theory
A) does a good job of explaining monetary policy during presidential election years. B) is unable to explain monetary policy during presidential election years. C) doesn't generally support the political business cycle theory. D) explains monetary policy best during years in which the President is running for reelection.
If total spending exceeds total output, then
A. inventory levels will rise. B. inventory levels will remain constant. C. inventory levels will fall. D. output will eventually decrease.
Each year, most U.S. companies bring a Certified Public Accountant (CPA) firm to audit their books. This is an example of
A. the benefits of decentralization or outsourcing. B. separation of decision management and decision control. C. a lack of trust between the companies and the managers. D. the impact of influence costs.
There are a number of reasons why labor supply curves will shift in a particular industry. Which one of the following is NOT one of them?
A) Changes in working conditions in an industry affect the labor supply curve. B) job flexibility that determines the position of the labor supply curve C) There is a change in the market wage rate. D) Taxes on labor affect the labor supply curve.