One reason why the demand for gasoline is inelastic is because
A) substitutes for gas abound.
B) substitutes for gas are hard to find.
C) gasoline is a luxury item.
D) people have a long time to shop around for automobiles that use less gas.
E) buses run on diesel fuel rather than gasoline.
B
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What will be an ideal response?
Assuming that workers are fully aware of their working conditions, which of the following will not happen when the government mandates pollution control to protect workers' health?
A. Wages will fall at all but the cleanest firms. B. Firms with low profits before the mandate may shut down or exit the industry. C. The air in workplaces will become cleaner. D. Employment will likely decrease. E. Worker utility will increase.
If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is:
A. making a positive economic profit. B. making a zero economic profit. C. suffering an economic loss. D. None of these
What is featherbedding and why do unions engage in the practice?
What will be an ideal response?