Critically evaluate the following statement: Government policies to keep the price at which staple foods are bought and sold low helps to reduce poverty and inequality
What will be an ideal response?
Students must consider negative effects on rural areas.
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The burden of a tax falls entirely on sellers if ________
A) the price elasticity of demand is unitary elastic B) the price elasticity of supply is greater than 1 C) the income elasticity of demand is high D) the price elasticity of supply is zero (perfectly inelastic)
We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run
A) technology is fixed but it is not in the short run. B) the price level is constant but in the short run it fluctuates. C) the aggregate supply curve is horizontal while in the short run it is upward sloping. D) real GDP equals potential GDP.
Policy makers usually wait for ________ months of data to confirm a change
A) two B) three C) four D) six
An increase in income causes the demand for inferior goods to_____________ and the price of inferior goods to ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease