If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:
A. elastic.
B. unit elastic.
C. perfectly elastic.
D. inelastic.
Answer: D
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Under what conditions would this level be efficient at the regional level?
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
A price ________ is a regulated ________ that must be set below the equilibrium price to have an effect
A) floor; price B) floor; quantity C) ceiling; price D) ceiling; quantity
Which of the following issues were not discussed in the recent Doha trade talks?
A) Eliminating export subsidies from agricultural products. B) Eliminating high tariffs and tariff escalation. C) Solving the conflicts of providing cheaper medicines to developing countries while promoting research and development. D) Establishing the basic framework for an all-encompassing world free trade agreement.
Gross private domestic investment
a. excludes all investment in the United States by foreign firms. b. includes all capital in the United States. c. includes net additions to the capital stock plus all new corporate stocks and bonds. d. includes business expenditures on new factories, tools, and machinery.