In differentiating between the short-run and long-run elasticities for the same good, when economists talk about short-run elasticities,
a. they cannot distinguish between the two types
b. there is no differentiation if it's the same good
c. they are the same as long-run elasticities for the same good
d. they are usually higher than long-run elasticities
e. they are usually lower than long-run elasticities
E
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Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) luxury. B) inferior good. C) necessity. D) normal good.
All of the following will cause a shift in the supply of smartphones EXCEPT
A) a decrease in the prices of smartphones. B) an increase in the cost of producing smartphones. C) a per-unit government subsidy on the production of smartphones. D) a decrease in the number of smartphone manufacturers.
Network externalities
a. explain why switching costs fall as the size of a network increases b. are the service-industry equivalent of natural monopolies in goods-producing industries c. are more important in the short run than in the long run d. help explain why monopolies often do not last for very long e. can explain the dominance of existing firms in some industries
Which of the following can a positive analysis accomplish?
a. It can tell an advertising executive what type of ads she ought to order. b. It can tell us how much the demand for a product will increase. c. It can tell us if one policy is better than another. d. It can tell a policy maker what is the best course of action.