There are very few, if any, good substitutes for motor oil. Therefore, the
a. demand for motor oil would tend to be inelastic.
b. demand for motor oil would tend to be elastic.
c. demand for motor oil would tend to respond strongly to changes in prices of other goods.
d. supply of motor oil would tend to respond strongly to changes in people's tastes for large cars relative to their tastes for small cars.
a
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The excess burden of taxation will _____ when the demand curve is more elastic
a. not change b. be higher c. be lower d. be zero
One way to approach saving is to have a goal of building a(n) ______________ of three to six month's income
a. Emergency fund b. Umbrella reserve c. Quantity fund d. Production/consumption reserve
When a lack of information exists for parties to a deal:
A. it is always worth getting more information before making a decision. B. the cost of acquiring information sometimes is prohibitive and not worth it. C. an exchange will never happen. D. the exchange will always happen anyway, with little chance of maximizing surplus.
A cartel is a group of firms that: a. agree to increase industry output in order to boost profits
b. agree to restrict industry output in order to boost profits. c. agree to differentiate their products from one another. d. together control a significant portion of an industry's output, but fail to consider the behavior of rivals when making decisions.