The larger the portion of a person's total budget spent on a good, the more inelastic the demand for the good
Indicate whether the statement is true or false
FALSE
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Since measurable factors such as years of experience and years of education explain less than half of the variation in wages, ability, effort, and chance must play a significant role in determining wages
a. True b. False Indicate whether the statement is true or false
An increase in the price of cameras results in a decrease in the demand for film. The two products are
a. complements. b. unrelated. c. demand elastic d. substitutes
Barriers to entering an industry:
A. encourage allocative efficiency. B. encourage productive efficiency. C. are the basis for monopoly. D. apply only to purely monopolistic industries.
If the voluntary contributions experiment described at the end of the chapter is played multiple times, we would expect:
A. the voluntary contributions will be zero or close to zero. B. the voluntary contributions will exceed the amount required to provide the public good. C. the voluntary contributions will equal the amount required to provide the public good. D. the voluntary contributions will fall short of the amount required to provide the public good, but only by a small amount.