Chronic excess demand will be a bigger problem in markets with price ceilings for goods where the demand is very ____________ and the supply is very _______________.
a. elastic; elastic
b. inelastic; inelastic
c. elastic; inelastic
d. inelastic; elastic
e. steep; flat
Ans: a. elastic; elastic
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The law of diminishing marginal utility states that total utility will increase at a decreasing rate as additional units of a commodity are acquired.
Answer the following statement true (T) or false (F)
Is the minimum wage fair?
A) Yes, because all workers benefit because they are paid more. B) No, because it enhances the prospects of voluntary exchange. C) No, because workers who lose their jobs are made worse off. D) Yes, because firms must pay a wage closer to a living wage. E) Yes, because workers need the extra income.
When foreign investors in Thailand began to realize that Thailand could not maintain its peg to the dollar indefinitely, they began to ________ in Thailand and exchange ________. This change in investment by foreigners is termed capital flight
A) purchase more investments; dollars for baht to purchase these investments B) sell off their investments; the dollars they received for baht C) purchase more investments; baht for dollars to purchase these investments D) sell off their investments; the baht they received for dollars
Value-added taxes were introduced in the European Union _____
a. to get rid of inefficient transaction taxes b. to harmonize tax structures among nations c. to make taxes more equitable d. all of the above e. a and b