If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is
A) relatively elastic.
B) relatively inelastic.
C) perfectly elastic.
D) perfectly inelastic.
B
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Every year, the U.S. allows 500,000 people from developing countries to immigrate to the U.S. permanently, which means:
A. it has a lower rate of acceptance than admission rates to the most competitive U.S. colleges. B. there is a severe surplus, since 13.6 million apply to enter the U.S. C. many people resort to immigrating illegally. D. All of these statements are true.
Professor Cowen says that fiscal policy would make more sense if we:
A. relied more heavily on tax cuts than we currently do for fiscal policy. B. ran government budget deficits in years in which the unemployment rate was high. C. used a combination of tax cuts and increases in government spending. D. actually had government budget surpluses in years in which the economy was in good health.
When spending is greater than output, firms will experience falling inventories, and prices of goods and services will rise.
Answer the following statement true (T) or false (F)
If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market. B. government intervention will increase total surplus. C. government intervention will make things better for buyers and sellers. D. government intervention will raise prices to consumers.