A less elastic demand for a good could result from
a. strong supply-side reactions
b. an increased number of available substitutes
c. lower consumer incomes
d. a longer time horizon
e. a shorter time horizon
E
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When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall b. the money supply must fall c. the aggregate demand curve shifts rightward d. aggregate supply moves rightward e. there is a federal budget surplus
The demand curve for a good is very unlikely to be perfectly vertical because
a. scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive. b. as the price of a good rises to high enough levels, the incentive for other suppliers to invent new substitutes for the good increases. c. consumers generally do not care about the price of the goods they consume. d. both a and b are true.
If the price of tables sold by All-Oak Table Co. decreases from $500 to $400, then the:
A. supply of labor to All-Oak Table Co. increases. B. demand for labor by All-Oak Table Co. decreases. C. demand for labor by All-Oak Table Co. increases. D. supply of labor to All-Oak Table Co. decreases.
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 18.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting:
A. 1/12 of a snowboard. B. 1/8 of a snowboard. C. 1/3 of a snowboard. D. 3 snowboards.