Other things being equal, a decrease in the price of ethanol will
A. decrease the use of corn in ethanol production but increase the use of corn in HFCS (another product produced from corn).
B. decrease the use of corn in ethanol production and in HFCS.
C. decrease the use of corn in all corn uses.
D. increase the use of corn in HFCS.
Ans: A. decrease the use of corn in ethanol production but increase the use of corn in HFCS (another product produced from corn).
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If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then the demand for the good is _____
a. inelastic b. relatively elastic c. unit-elastic d. perfectly inelastic e. income elastic
Which of the following would be likely to increase the doubling time for an economy's real GDP?
A. government policies improve the health of the population B. the rate of population growth slows C. an increase in the technology used for producing goods and services D. better education increases the productivity of workers
Figure 3.4 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D2.
If the personal assets of the owners can be claimed if the business is bankrupt, the owners are said to have
A) unlimited liability. B) a corporation type of business. C) limited liability. D) separation of ownership from control.