An import quota will make the supply curve for the imported good
A) perfectly inelastic.
B) perfectly elastic.
C) unitary elastic.
D) negatively sloped.
Answer: A
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If the economy's resources are fully employed and prices are starting to rise, the Fed can ________ the money supply in an attempt to reduce inflationary pressure. If this action is well-calculated, output will ________
A) increase; rise B) increase; remain close to its potential level C) decrease; remain close to its potential level D) decrease; fall
As nonunion construction workers replace a unionized work force, the average wage in the construction sector is likely to rise
Indicate whether the statement is true or false
If government legislates a price floor that is below the equilibrium price
A. a shortage will develop. B. a black market will soon develop. C. a surplus will develop. D. market price and quantity sold will be unaffected.
The demand for grape-flavored Hubba Bubba bubble gum is likely
a. inelastic because there are many close substitutes for grape-flavored Hubba Bubba . b. elastic because there are many close substitutes for grape-flavored Hubba Bubba. c. inelastic because the market is broadly defined. d. elastic because the market is broadly defined.