The supply of product X is elastic if
A. an 8% increase in price generates an 8% increase in quantity supplied.
B. a 10% decrease in price does not affect quantity supplied.
C. a 5% increase in price generates a 7% increase in quantity supplied.
D. a 7% decrease in price generates a 5% decrease in quantity supplied.
Answer: C
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It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?
Quantitative easing involves policies that are designed to:
A. directly increase the money supply by a certain amount. B. indirectly increase the money supply by decreasing interest rates. C. directly increase aggregate demand through increased government spending. D. indirectly increase aggregate demand through decreased taxes.
Many health economists believe that health-care reform will:
a. decrease demand for new, better, and more expensive medical advances. b. lower premiums for young adults c. eliminate private health insurance entirely. d. have a very limited effect on reducing government health-care expenditures.
Earnings of some highly skilled or highly specialized persons can be classified as economic rents
a. True b. False Indicate whether the statement is true or false