The crowding-in effect depends on the sensitivity of investment to
A. GDP, as does the crowding-out effect.
B. interest rates, whereas the crowding-out effect depends on the sensitivity of investment to GDP.
C. interest rates, as does the crowding-out effect.
D. GDP, whereas the crowding-out effect depends on the sensitivity of investment to interest rates.
Answer: D
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Which goods have more elastic demands?
A) goods with many substitutes B) goods which are necessities C) goods with few substitutes D) goods whose purchase represents a small percentage of income
Zero economic profits for a perfectly competitive firm in the long run means
a. the firm must exit the industry. b. the firm is in equilibrium. c. the firm will shut down until the market improves. d. average revenue is insufficient to cover long-run average cost.
The benefits of social regulation are
A. obvious to almost everyone, but the costs are usually hidden. B. often difficult to measure. C. easy to measure by the marginal value method. D. greater than the costs of social regulation in every example in the country today.
Related to the Economics in Practice on page 716: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except
A. video conferencing decreases the need for expensive business travel. B. e-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest. C. fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly. D. high-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world.