The amount of time elapsed since a price change impacts the elasticity of demand because as more time passes,
A) people can find more substitutes, and so the elasticity of demand decreases.
B) people can find more substitutes, and so the elasticity of demand increases.
C) people's incomes will increase, and so the elasticity of demand decreases.
D) the good's price will have a chance to return to its previous level.
B
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From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends. B) because they must be included in stockholders' incomes for purposes of personal income taxation. C) insofar as they are contractual obligations. D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
In September 2014, the official U-3 unemployment rate dropped from 6.1 percent to 5.9 percent. This change could have been caused by
A) unemployed workers giving up looking for a job. B) part-time workers getting a full-time job. C) full-time workers becoming part-time workers. D) workers who had previously given up looking for a job starting to look again.
Classical economists suggest that unemployment is a short-lived phenomenon because
A) wages adjust quickly to equilibrate quantity of labor demanded with quantity of labor supplied. B) wages remain unchanged when the quantity of labor demanded exceeds the quantity of labor supplied. C) wages remain unchanged when the quantity of labor supplied exceeds the quantity of labor demanded. D) wages tend to rise slowly when the quantity of labor demanded equals the quantity of labor supplied.
What are the advantages of a tax system for pollution control?