The elasticity of demand for a project is -1.5. This means that a 30 percent increase in the quantity of the good is caused by a
A. 20 percent increase in the price of the good.
B. 2 percent increase in the price of the good.
C. 20 percent decrease in the price of the good.
D. 15 percent decrease in the price of the good.
Answer: C
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Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)
A) an increase in the price of a rutabaga B) an exceptionally cold summer that killed much of the rutabaga crop C) a fall in the price of fertilizer used to grow rutabagas D) Both answers A and C shift the supply curve of rutabagas rightward. E) Both answers A and B shift the supply curve of rutabagas rightward.
All of the following, except one, would serve to increase competition in an oligopoly. Which is the exception?
a. increased imports from foreign firms b. an increase in the minimum efficient scale c. an increase in the size of the market d. new technologies that reduce barriers to entry e. action by the U.S. Justice Department to break up large firms
In William Safire’s 1983 essay, “Smoot-Hawley Lives,” he argues that the United States should
A. threaten retaliation if trading partners practice protectionism. B. pursue a unilateral free trade policy regardless of what others do. C. limit government’s role in the economy.
A perfectly elastic long-run supply curve indicates
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) that some input prices change as firms enter and exit the industry.