Which of the following is an example of a good for which the demand is likely to become more elastic over time if price changes dramatically?

(A) Gourmet food
(B) Prescription medicine
(C) Gasoline
(D) Shoe polish


Ans: (C) Gasoline

Economics

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The difference between the market price of an acre of land and its supply price (including transportation) is

a. land rent b. zero, by definition c. negative d. the price of land e. infinite when the supply of land is fixed

Economics

Costs that are borne solely by the individuals who incur them are called

A. social costs. B. implicit costs. C. private costs. D. public costs.

Economics

The above figure shows a labor market. Before the minimum wage of $8 an hour is imposed, employment equals ________ workers; after the minimum wage of $8 an hour is imposed, employment equals ________ workers

A) 80,000; 40,000 B) 40,000; 80,000 C) 60,000; 40,000 D) 60,000; 80,000 E) 80,000; 60,000

Economics

The M2 measure of the money supply includes

a. M1 plus credit cards. b. M1 plus savings deposits, small time deposits, and money market funds. c. M1 plus Eurodollars. d. M1 minus Eurodollars.

Economics