A corn farmer is likely to have a _____________ price elasticity of supply than does a tree farmer due to ________________.
A. more elastic; a more flexible production process
B. less elastic; a more flexible production process
C. less elastic; a less flexible production process
D. more elastic; a less flexible production process
A. more elastic; a more flexible production process
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When raising taxes, the quantity effect tells us that the:
A. government gets more revenue per units sold. B. higher tax rate causes fewer units to be sold. C. government gets less revenue per unit sold. D. higher tax rate causes more units to be supplied.
One reason the Medicare system costs so much is
A) the amount of medical services is determined by the equilibrium of supply and demand. B) the supply of medical services does not respond to price changes. C) supply and demand analysis does not apply. D) beneficiaries are entitled to receive services for which the per-unit cost exceeds their own personal out-of-pocket payment.
In order for an economy to increase its production possibilities, the economy must
A. increase its wants. B. reduce output. C. be very efficient. D. increase inputs.
Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, a decline in productivity is depicted by:
A. panel (A) only.
B. panel (B) only.
C. panel (C) only.
D. panels (B) and (C).