If the price elasticity of supply is equal to 1, we would say the supply of the item is
A) unit elastic.
B) inelastic.
C) elastic.
D) perfectly elastic.
Answer: A
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In 2003, federal government expenditures as a percentage of GDP were around _____
a. 10 percent b. 20 percent c. 30 percent d. 40 percent
Which of the following events would allow the production possibilities curve to shift outward?
A. More teenagers enter the labor force. B. The economy's capital stock declines. C. Technology is lost. D. People begin to retire at earlier ages.
If the production of ukuleles creates a negative externality that is NOT corrected for by the government, the equilibrium quantity of ukuleles is
A) higher than optimal. B) lower than optimal. C) efficient. D) at a optimal level.
The percentage of total national income spent on health care in the United States has
A) declined rapidly since 1965. B) remained below the level of inflation. C) risen steadily since 1965. D) remained constant over the last few years.