Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. An increase in the production of beer resulted in the demand for hops because hops are ________ to beer.
A. inputs
B. completely unrelated
C. complements
D. substitutes
Answer: A
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Which of the following is false? a. When demand is elastic, quantity and total revenue change in the same direction along it. b. When demand is inelastic, quantity and total revenue change in the opposite direction along it. c. When supply is elastic, quantity and total revenue change in the same direction along it
d. When supply is inelastic, quantity and total revenue change in the opposite direction along it.
Refer to the diagram for a private closed economy. At the $200 level of GDP:
A. consumption is $200 and planned investment is $50 so that aggregate expenditures are
$250.
B. consumption is $200 and planned investment is $100 so that aggregate expenditures are
$300.
C. consumption is $250 and actual investment is $50 so that aggregate expenditures are
$300.
D. aggregate expenditures fall short of GDP with the result that GDP will decline.
A consumer cannot gain consumer’s surplus if she purchases more than one unit of a good.
Answer the following statement true (T) or false (F)
As long as two firms have different abatement costs, they:
A. can benefit under a system of marketable pollution permits by trading the right to pollute. B. will prefer a pollution tax to a system of marketable pollution permits. C. will decrease the price of their product if taxed on the amount of pollution they emit. D. will not be able to benefit from trading the right to pollute under a system of marketable pollution permits.