When an economist considers welfare evaluations, he is looking at
A) whether a policy increases social welfare.
B) the ability of an economy to take care of the unemployed.
C) price inertia.
D) new open economy macroeconomics.
A
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The rate of return in loanable funds describes the:
A. expected profit that a project will generate per dollar invested. B. cost of borrowing. C. interest rate on loans. D. the profit firms should make when investing borrowed funds.
The long-run price elasticity of demand for a good is usually larger than its short-run price elasticity because
a. as the saying goes, "out of sight, out of mind" b. more goods are demanded in the long run than in the short run c. people have more time to find substitute goods d. incomes tend to rise over time e. supply curves shift outward over time
Figure 11-5
In Figure 11-5, Crown Theater, a monopolist movie theater, will make a profit of ____ at its profit-maximizing price and quantity of theater tickets.
A. $450 B. $150 C. $300 D. $750
Refer to the following graph.
If the price is set at Pc:
A. a nonprice rationing mechanism must determine which producers will be able to sell the product. B. a nonprice rationing mechanism must determine which buyers will be able to purchase the product. C. the demand curve will shift to the left to achieve a new equilibrium. D. anyone willing and able to pay the asking price will be able to purchase the product.