If the supply of a good is relatively elastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good.
b. highly sensitive to the price of the good.
c. unrelated to the price of the good.
d. none of the above.
B
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If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will
A) produce more of the labor intensive good and less of the capital intensive good. B) produce more of both goods. C) produce the same amount of both goods. D) produce less of the labor intensive good and more of the capital intensive good.
Which of the following is not a cost of taxes to taxpayers?
a. the tax payment itself b. deadweight losses c. administrative burdens d. goods and services provided by the government
Refer to the graph shown. If market price is currently $7.00 per unit, this perfectly competitive firm will maximize profit by producing:
A. between 550 and 650 units of output. B. 850 units of output. C. 650 units of output. D. 450 units of output.
In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A. the owners of all of the resources used to make the car. B. the owners of firms who sold materials to the carmaker, and the rest stays with the firm. C. only the owners of the carmaker. D. the workers who helped build the car.