If firms do not increase their quantity supplied when price changes, then supply is
A) elastic. B) perfectly inelastic. C) relatively inelastic. D) perfectly elastic.
B
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Marginal utility theory implies that, starting from consumer equilibrium, a rise in income will __________.
When the government establishes a minimum price for an agricultural product above the equilibrium price, the government is creating a(n)
A) price ceiling. B) elevated price. C) price floor. D) surplus price.
Accounting profit will always be
A) more than economic profit. B) equal to sunk costs. C) less than economic profit. D) equal to implicit costs.
Which of the following often implies that a single variable acts as a ‘sufficient statistic’ for predicting the outcome variable, y?
A. Ceteris paribus B. Conditional independence assumption C. Efficient markets theories D. Gauss-Markov theorem