Elasticity also reveals whether firms can pass __________ costs that they incur on to consumers.
a. direct
b. higher
c. lower
d. indirect
b. higher
Elasticity also reveals whether firms can pass higher costs that they incur on to consumers.
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The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by
a. investment spending. b. export spending. c. government spending. d. the level of aggregate expenditure.
Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent. With this plan
A) the quantity of apartments demanded will increase. B) the quantity of apartments supplied will increase. C) young people and poor people will have an easier time finding apartments. D) the deadweight loss in Chicago's apartment market will be eliminated. E) there will be a surplus of apartments offered for rent.
Which of the following is an example of a price ceiling?
A) the minimum wage B) agricultural price supports C) rent controls D) None of the above is correct.
When making decisions, economists believe that individuals act rationally if they: a. seek to improve their own situations and not try to anticipate future consequences of their actions
b. only pursue the goals of the community. c. people do the best they can, based on their values and information, under current and future circumstances. d. always choose alternatives that offer the greatest financial reward.