Refer to Figure 6-4. Which of the following statements about price elasticity of demand is true?
A) The inelastic portion of the demand curve corresponds to the segment above the midpoint.
B) At the midpoint of the demand curve, the elasticity coefficient is zero.
C) The elastic portion of a straight-line, downward-sloping demand curve corresponds to the segment above the midpoint.
D) The elasticity coefficient is constant along the demand curve.
C
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Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
A. Taxes on pollution B. Voluntary compliance C. Tradable emissions permits D. Direct controls like legal ceilings
The retirement poverty problem is that
A. retirement makes people feel poorer because they are not engaged in productive work. B. without Social Security payments, almost all seniors would be in poverty. C. many workers are too poor to save for retirement. D. many retired people live in poverty.
Suppose the Fed conducts an open market sale. We can expect this transaction to
A) reduce the money supply, increase bond prices, and lower interest rates. B) increase the money supply, lower bond prices, and lower interest rates. C) increase the money supply, raise bond prices, and lower interest rates. D) reduce the money supply, reduce bond prices, and increase interest rates.
The Alcoa case:
A. supported the structuralist approach to antitrust. B. struck down the treble damages provision of the antitrust laws. C. called for federal regulation of any industry with a four-firm concentration ratio in excess of 50 percent. D. decision was consistent with a behavioralist approach.