If the demand for illegal drugs is inelastic, then a government policy that causes illegal drug price to rise would cause those who support their drug habit by property theft to:
A. increase their theft to pay for their drugs.
B. increase their drug dependency.
C. reduce their theft to pay for their drugs.
D. end their drug dependency.
Answer: A
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Which of the following is the best example of a voluntary export restraint?
A) a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States B) a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers C) a tax placed on all sports utility vehicles sold in the domestic market D) a limit set by the Japanese government on the number of sports utility vehicles that the United States can import from Japan
An increase in professors' salaries increases the supply of college education
a. True b. False
In equilibrium under monopolistic competition: a. firms always earn profits in the short run
b. firms always suffer losses in the short run. c. output is at the socially efficient level in the long run. d. marginal revenue is less than price.
From 1973 to 1995 the growth rate of labor productivity in the U.S. was approximately
a. ?0.8%. b. 1.4%. c. 2.9%. d. 5.1%.