One of the difficulties in using discretionary fiscal policy effectively is that the legislative decision-making process is sometimes very long and drawn out
a. True
b. False
Indicate whether the statement is true or false
True
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A packaged fruit juice manufacturer contracts with several farmers to buy their orchards to support a new production facility. However, a particular orchard owner later refuses to sell his farm at the price in their contract. In such a case the court will order a liquidated damage
Indicate whether the statement is true or false
During the holiday season, high-end retailers frequently place a high price on merchandise on weekends and discount the price during the week. They do this because they believe that two groups of customers exist: shoppers with little free time and bargain hunters. Bargain hunters have time to shop around and frequently shop during the week. What do economists call this price strategy used by
high-end retailers? a. oligopoly b. price discrimination c. compensating differential d. in-kind transfers
If consumers have a long time to respond to an increase in electricity prices their demand is likely to be ________ than if they are only given a short time.
A. no different B. higher C. more elastic D. less elastic
Recall the Application about how changes in supply affect the price of gasoline to answer the following question(s).Recall the Application. Suppose the price elasticity of demand for gasoline is 0.20 and the price elasticity of supply for gasoline is 0.55. If supply decreases by 50 percent, the equilibrium price will increase by:
A. 67 percent. B. 70 percent. C. 143 percent. D. 150 percent.