If two goods have a ________ cross-price elasticity of demand, then the antitrust agencies can conclude that the products ________ compete in the same market as strong substitutes.
A) large; do not B) small; do C) zero; do D) large; do
D) large; do
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The tax multiplier is negative because increases in taxes lead to decreases in consumer spending
Indicate whether the statement is true or false
Refer to Table 4-8. If a minimum wage of $9.50 an hour is mandated, what is the quantity of labor demanded?
A) 380,000 B) 370,000 C) 360,000 D) 10,000
Automatic stabilizers lead to: a. a decrease in taxes collected by the government during an economic expansion. b. a decrease in unemployment compensation during a recession
c. Congressional action on changing the tax codes. d. none of the above
Imperfect competition and market power
A. are always the result of product differentiation. B. result from diseconomies of scale. C. result in higher output than in perfect competition. D. are major sources of inefficiency.