The production of methamphetamine (meth) is a social problem in the Midwest. Iowa is considering two potential programs: Operation Methbust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs. Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth. Assuming that each program were successful, which of the following statements is correct?
a. Both Operation Methbust and Say No would reduce the demand for meth.
b. Both Operation Methbust and Say No would reduce the supply of meth.
c. Operation Methbust would reduce the demand for meth; Operation Say No would reduce the supply of meth.
d. Operation Methbust would reduce the supply of meth; Operation Say No would reduce the demand for meth.
Answer: d. Operation Methbust would reduce the supply of meth; Operation Say No would reduce the demand for meth.
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The supply of product X is unit-elastic if the price of X increases by ________ and, as a result of that price change, the quantity supplied ________
A. 8%; increases by 8%. B. 5%; increases by 7%. C. 7%; increases by 5%. D. 10%; stays the same.
The three main provisions of the Taft-Hartley Act were (1) __________; (2) _________; and (3) ____________.
Fill in the blank(s) with the appropriate word(s).
Some economists argue that well-functioning capital markets that allow funds to move from those who have but do not need funds to those who need but do not have funds, are essential for rapid economic growth. Well-functioning capital markets are an example of:
A. entrepreneurship. B. growth-compatible institutions. C. physical capital. D. human capital.
The aggregate demand curve
A. slopes upward. B. slopes downward. C. is horizontal. D. is vertical.