Cross elasticity of demand could be used to measure the responsiveness of the quantity demanded of swimming pools to a change in the price of picnic tables.
Answer the following statement true (T) or false (F)
True
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One reason that consumers and businesses might not act rationally is
A) they may not realize their actions are inconsistent with their goals. B) they do not always value fairness when they make choices. C) it is difficult to obtain enough information about the elasticities of demand and supply. D) consumer tastes change constantly.
The fact that different countries experience different standards of living is largely explained by differences in those countries'
a. populations. b. productivity levels. c. locations. d. None of the above is correct. Economists are puzzled by differences in standards of living around the world.
When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is __________ and the firm is experiencing __________ .
A) upward sloping; diseconomies of scale
B) downward sloping; constant returns to scale
C) downward sloping; economies of scale
D) horizontal; constant returns to scale
A government can impose an import quota or an equivalent tariff that achieves the same impact on trade. What is the key difference in the welfare outcomes of these two policy options?
A) The domestic quantity supplied is larger under the tariff policy. B) The domestic price is higher under the tariff policy. C) The domestic price is lower under the tariff policy. D) The government captures some of the profits from foreign suppliers through the tariff revenue.