A. It can be concluded that the demand for the product is elastic. B. It can be concluded that the supply of the product is elastic. C. It can be concluded that the supply of the product is inelastic. D. No conclusion can be reached with respect
to the elasticity of supply.
A. perfectly elastic in the long run because consumer demand will have sufficient time to
adjust fully to changes in supply.
B. more elastic in the long run because there is time for firms to enter or leave the industry.
C. perfectly inelastic in the long run because the law of scarcity imposes absolute limits on
production.
D. less elastic in the long run because there is time for firms to enter or leave an industry.
Answer: B
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The combination of producer and consumer surplus shows the:
a. maximum price that buyers are willing to pay for a good b. minimum price buyers are willing to pay for a good c. maximum price that sellers can charge. d. minimum price below which sellers will not sell. e. gains from voluntary exchange.
For a common resource, the marginal private cost of the resource is equal to the marginal social cost
Indicate whether the statement is true or false
Why doesn't the marginal worker hired earn economic rent in a competitive labor market?
A) His reservation wage is less than the wage. B) His reservation wage is greater than the wage. C) His reservation wage is equal to the wage. D) He is paid a wage that is lower than the others.
Of all the categories of unemployment, most unemployed persons fall into the category of
A) reentrant. B) new entrant. C) job leaver. D) job loser. E) none of the above