Which of the following causes a good to be more elastic?
a. Fewer suppliers of the good.
b. Fewer substitutes.
c. Greater necessity.
d. Greater percentage of income
Answer: d. Greater percentage of income
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Which of the following represents the marginal cost of a soda? I. The opportunity cost of producing another soda. II. The minimum price someone is willing to pay for another soda
A) I only B) II only C) I and II D) Neither I nor II
Explain what type of unemployment changes with the business cycle and how it changes
What will be an ideal response?
"If the United States enters a war in the Middle East, gasoline prices will go up." This statement is an example of
A) a positive statement. B) an argument. C) a normative statement. D) a factual statement.
Which of the following is a key characteristic of the indifference curve?
A. Indifference curves can cross to show transitivity of products. B. As more of one good is consumed more of the other good must also be consumed. C. Indifference curves are concave to the origin. D. Indifference curves further from the origin are preferred to those closer to the origin.