Which is not characteristic of a product with relatively inelastic demand?
A. The good is regarded by consumers as a necessity
B. There are a large number of good substitutes for the good
C. Buyers spend a small percentage of their total income on the product
D. Consumers have had only a short time period to adjust to changes in price
B. There are a large number of good substitutes for the good
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A worker supplies labor to the market if the
A) wage is less than the reservation wage. B) wage is greater than the reservation wage. C) minimum wage is less than the reservation wage. D) demand for labor exceeds the supply of labor.
Refer to Figure 4-11. Suppose the market is initially in equilibrium at price P1 and then the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax?
A) The consumer will bear a greater share of the tax burden if the demand curve is D2. B) The consumer will bear a greater share of the tax burden if the demand curve is D1. C) The consumer will bear the entire burden of the tax if the demand curve is D1 and the producer will bear the entire burden of the tax if the demand curve is D2. D) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2.
Which of the following explains the shape of the short-run aggregate supply curve?
a. The inverse relationship between the quantity supplied and the cost per b. The direct relationship between the quantity supplied and the cost per unit c. The direct relationship between the quantity supplied and the price level d. The inverse relationship between quantity supplied and GDP e. The inverse relationship between quantity supplied and the profit per unit
The primary function of the Export-Import Bank is to assist in
a. guaranteeing markets for U.S. importers. b. financing exports from the United States. c. providing foreign currency to U.S. banking institutions. d. reducing tariff rates between trading nations.