Ceteris paribus, if more alternative forms of energy become available, we would expect the demand for gasoline to become:
A. more elastic.
B. more inelastic.
C. perfectly elastic.
D. perfectly inelastic.
Answer: A
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Wages that are higher than the current market wage:
A) reduce the cost of production of various goods. B) lower the aggregate price index. C) dissuade workers from shirking. D) lower the productivity of workers.
A decline in which of the following types of spending was not generally considered a part of the beginning and continuation of the Great Recession?
A) residential investment spending B) federal government spending C) consumer durables spending D) business investment spending
A decrease in a wage taxes causes the opportunity cost of leisure to increase.
Answer the following statement true (T) or false (F)
Just after a cyclical trough, given the excess capacity in the economy, there should be an unusually ________ rate of closing the gap between desired and actual capital stocks, making net investment respond relatively ________ to rising sales
A) high, strongly B) high, weakly C) low, strongly D) low, weakly