If an item has several good substitutes, the demand curve for that item is likely to be
A) relatively inelastic.
B) relatively elastic.
C) perfectly inelastic.
D) unit elastic.
B
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Which statement is false?
A. Most jobs in defense plants during World War II were held by white males. B. The federal government instituted wage and price controls during World War II. C. Very little new housing was built during the Great Depression and World War II. D. None of the statements are false.
If at an output of 4,000 units, Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should
A. reduce output to maximize total profit. B. increase output until marginal profit falls to zero. C. do whatever is necessary to increase marginal profit. D. There is not enough information to make a decision.
If the economy is in a recession, the Fed is likely to:
A. increase the reserve requirement. B. buy bonds through open market operations. C. print more currency. D. increase the discount rate.
Selling baked goods out of your home or apartment is illegal in Wisconsin and New Jersey, but in recent years, California, Minnesota, and Texas have repealed their laws banning the sale of home-baked goods. The repeal of these laws will cause the
revenues of commercial bakeries in these three states to ________ and their profits to ________. A) rise; increase B) rise; decrease C) fall; decrease D) fall; increase