Suppose the demand for rescue services in our national parks is perfectly inelastic. This fact would mean that a 31 percent increase in rescue fees leads to
A) a 31 percent decrease in the quantity demanded.
B) a 31 percent increase in demand.
C) a 31 percent decrease in demand.
D) no change in the quantity demanded.
E) a decrease in the quantity demanded to 0 rescues.
D
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A rise in the price level produces a ________ the aggregate supply curve
A) rightward shift of B) movement downward along C) leftward shift of D) movement upward along E) rightward shift of the aggregate supply curve and a movement downward along
Natural oligopoly is a situation where
A) the level of demand can support only a few firms. B) there is only one firm. C) there are only two firms. D) there are legal barriers to entry.
Which of the following statements is true about Say's law?
a. It states that supply creates its own demand. b. It states that demand creates its own supply. c. It states that total output will always exceed total spending. d. It states that consumption spending is the most volatile component of aggregate expenditures. e. It is a major proposition of the Keynesian model.
Which of the following is true with regard to minimum wages? a. A minimum wage does little to alleviate poverty
b. A minimum wage helps deal with the problem of poverty. c. A minimum wage leads to a surplus or unemployment in the skilled labor market. d. A minimum wage adversely affects the unskilled laborers between the age group 40 and 45. e. A minimum wage helps provide employment to teenagers and improve their standard of living.