Which of the following products comes closest to having a perfectly inelastic demand?
A) bus rides B) cholesterol medication in general
C) gasoline D) iPhones
B
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The main examples of macroeconomic coordination failures are
A. profit declines. B. relative price changes. C. recessions and depressions. D. consumer taste changes.
Over the past 100 years, as the U.S. economy's income has grown,
a. tax rates have decreased, while tax revenues have increased. b. tax rates have increased, while tax revenues have decreased. c. both tax rates and tax revenues have increased. d. both tax rates and tax revenues have decreased.
Keynesian theory
A. established the validity of Say's Law. B. Assumes that supply creates its own demand. C. is primarily demand-oriented. D. assigns much importance to aggregate supply and the average price level.
If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then
A. a shortage will be created causing the price to rise to the equilibrium price of $4.50. B. a permanent shortage will develop because the government established the minimum price at $5.00. C. a surplus will be created causing the price to fall to the equilibrium price of $4.50. D. a permanent surplus will develop because the government established the minimum price at $5.00.