Assuming elasticity of demand is reported as an absolute value, a price elasticity of demand of 0.4 indicates an:
A. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
B. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
Answer: A
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If Congress raised taxes on businesses, this action would:
a. Increase per-unit production costs and thus increase aggregate demand b. Increase per-unit production costs and thus decrease aggregate supply c. Increase aggregate demand and increase aggregate supply d. Increase per-unit production costs and thus increase aggregate supply
A friend of yours receives a government voucher for an apartment in a public housing project. This apartment represents
A) a government-sponsored good. B) the free-rider problem. C) a public good. D) the drop-in-the-bucket problem.
What are four criticisms of social regulation?
What will be an ideal response?
Based on the data in the tables below, you can conclude that:
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.
A. OMICS has a comparative advantage in the production of good A
B. ECON has a comparative advantage in the production of good A
C. ECON has a comparative advantage in the production of good B
D. Neither ECON nor OMICS has a comparative advantage