An explanation for why the short-run aggregate supply curve is upward-sloping is because:
A. ?the quantity of real output supplied is inversely related to the aggregate supply curve.
B. ?nominal incomes are fixed.
C. ?the capital-output ratio is fixed.
D. ?an increase in price will increase the marginal aggregate output.?
Answer: B
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Trade theorists have proven that the gains from international trade
A) must raise the economic welfare of every country engaged in trade. B) must raise the economic welfare of everyone in every country engaged in trade. C) must harm owners of "specific" factors of production. D) will always help "winners" by an amount exceeding the losses of "losers." E) usually outweigh the benefits of protectionist policies.
The more substitutes that are available for a product, the more elastic the demand for that product is.
a. true b. false
The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue
From this we can conclude that the drivers believe that the demand for taxicab rides is A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
If both a buyer and a seller have the same information, they are said to have symmetric information.
Answer the following statement true (T) or false (F)