If the demand for illegal drugs is inelastic, then a government policy to cause their price to increase would cause total revenue from drug sales to:
A. rise.
B. fall.
C. stay the same.
D. drop to zero.
Answer: A
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________ unemployment is NOT associated with economic fluctuations
A) Frictional B) Cyclical C) Structural D) both A and C
The "invisible hand" refers to the notion that
A) competitive markets send resources to their highest valued uses. B) government intervention is necessary to ensure efficiency. C) marginal benefit decreases as more is consumed. D) marginal cost increases as more is produced. E) no matter what allocation method is used, the resulting production is efficient.
The value of cross elasticity of demand between orange soda and grape soda is:
a. negative. b. positive. c. 0. d. between ?1 and 0. e. less than ?1.
Which of the following is not true about the housing market?
a. The price of housing will increase or decrease in order to achieve an equilibrium b. An increase in the demand for housing will cause an increase in the quantity supplied of housing c. When the demand for housing increases, the price of housing will increase but the quantity supplied will not increase in the short run d. The housing market is a unique market because most people had to borrow money to buy their homes e. The only way to increase the supply of housing is to build more houses