Recent research estimates that the short-run price elasticity of demand for gasoline in the U.S. is -0.3, and the long-run price elasticity of demand is -1.4. What happens if the government increases the federal gasoline tax?
A . Consumer expenditures on gasoline decrease over the short run and long run.
B. Consumer expenditures on gasoline increase over the short run and decline over the long run.
C. Consumer expenditures on gasoline decline over the short run and increase over the long run.
D. Consumer expenditures on gasoline increase over the short run and long run.
B. Consumer expenditures on gasoline increase over the short run and decline over the long run.
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Refer to Table 2-15. What is Jack's opportunity cost of mowing a lawn?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
Periods of price deflation, such as the Great Depression, are characterized by
A) low nominal rates but high real rates of interest. B) low nominal and real interest rates. C) real rates of interest lower than the nominal rate of interest. D) high nominal and real rates of interest.
The government's share of employment peaked during the
A. 1960s. B. 1970s. C. 1940s. D. 1930s.
Refer to the above table. The marginal utility of the 2nd movie for Robert is
A) 95 units of utility. B) 90 units of utility. C) 80 units of utility. D) 190 units of utility.