A perfectly elastic supply curve would:
A. be horizontal.
B. be vertical.
C. intersect the horizontal axis.
D. intersect the two axes at the origin.
Answer: A
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The figure above shows the costs and benefits associated with producing paper. What is the unregulated competitive market level of output?
A) 0 B) 4 tons C) 6 tons D) More than 6 tons E) None of the above answers is correct.
The table below describes the value added in the production of a gallon of gasoline by each stage of production. (The values are hypothetical.)
Table 19-10 Stage of Production Value of Sales Value Added Oil drilling 0.75 Refining 1.25 Shipping 1.85 Retail sales 3.65 a) What is the value added by each stage of production? b) What is the total value added? For simplicity, you can ignore the cost of the inputs for oil drilling.
If the economy is in a recessionary gap, and the government attempts to balance the budget, the effect will be to
a. counteract the recession. b. worsen and prolong the recession. c. end the recession sooner. d. increase the level of real GDP.
There is an increase in the demand for cookies when the price of milk falls. Other things constant, we can conclude that cookies and milk are
A. independent goods. B. substitute goods. C. inferior goods. D. complementary goods.