Other things equal, the demand for a good tends to be more inelastic when
a. there are fewer available substitutes.
b. a longer time period is considered.
c. the good is considered a luxury good.
d. the market for the good is more narrowly defined.
A
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Assuming all else equal, if the Fed is expected to adopt a contractionary monetary policy, ________
A) labor demand will increase B) inflation expectations will increase C) the long-run real interest rate will increase D) labor supply will increase
In a multiplayer game where there are two equally-enjoyable choices of what to do, and everyone wants to do what everyone else is doing, only one Nash equilibrium is stable
Indicate whether the statement is true or false
Patents encourage inventions because without a patent
A) other firms could enter the inventor's market by producing the same product. B) nobody would demand the inventor's product. C) the inventor would receive no tax breaks. D) all markets would be public franchises.