Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. If the federal government eliminated the 18.4 cents per gallon gasoline tax, the price paid by buyers would
A) decrease by less than 18.4 cents.
B) decrease by 18.4 cents.
C) decrease by more than 18.4 cents.
D) stay the same.
E) increase by 18.4 cents.
A
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The higher the value for the index of intra-industry trade:
a. the lower total trade is for other products. b. the greater percentage of trade in that good is intra industry. c. the more we should be concerned about job loss and outsourcing. d. the higher the gains from trade.
A sandwich shop has six months left on its lease to its storefront and equipment and currently employs three workers who work on an on-call basis, with no contract. Ingredients are bought daily. How long is the long run for the sandwich shop?
A. The long and short run are the same in this case B. Six months, after which all inputs listed become variable C. A year, the typical term for long run, as there is nothing unusual about this business D. None of these is true.
During the 2008 financial crisis, it became:
A. easier for individuals but harder for businesses to obtain loans. B. harder for individuals but easier for businesses to obtain loans. C. harder for both individuals and businesses to obtain loans. D. easier for both individuals and businesses to obtain loans.
The cost of producing each bottle of a certain brand of shampoo is $0.25. If the market for shampoo is monopolistically competitive and demand for shampoo is inelastic, a manufacturer who charges $0.35 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) earn an economic profit of $0.10 per bottle D) earn a total revenue of $0.10 per bottle