Which of the following statements reflect sound economic reasoning?
What will be an ideal response?
If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it.
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The above figure shows the competitive market for turkey. The consumer surplus for the 300 millionth pound of turkey is
A) $2.00 per pound. B) $225 million. C) $0.80 per pound. D) $0.50 per pound.
In the long run, the price elasticity of demand is ________ than in the short run because ________
A) less; consumers have more time in which to make adjustments to price changes B) less; the percentage change is measured over a larger amount of time C) greater; consumers have more time in which to make adjustments to price changes D) greater; firms have more time to shift the burden of the tax forward to consumers
Which of the following would be associated with an inflationary gap?
A. Interest rates too low B. Business expectations pessimistic C. Inventory levels too low D. Stock market crash E. Inventory levels are too high
A period of decline in total output, income, employment, and trade, lasting six months or longer, is defined as a:
A. trough. B. secular trend. C. business cycle. D. recession.