When economists say the price elasticity of supply is elastic, they mean that
a. suppliers are willing to produce much larger amounts of their good.
b. suppliers are willing to produce only a small amount more of their good.
c. consumers are willing to purchase much larger quantities of the good.
d. the change in quantity supplied is relatively small compared to the change in price.
A
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"The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners." Discuss
What will be an ideal response?
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was a result of the increase in the relative price of energy. This explanation would require that, in light of higher energy costs, the
A) capital stock is overestimated. B) capital stock is underestimated. C) labor force is overestimated. D) labor force is underestimated.
If an economy were experiencing a high rate of unemployment as the result of insufficient aggregate demand, a Keynesian economist would favor:
a. a reduction in taxes coupled with a reduction in government expenditures of equal size. b. an increase in government expenditures coupled with an increase in taxes of equal size. c. a reduction in taxes, without any offsetting reduction in government expenditures. d. maintenance of a balanced budget.
Net exports
a. are the second largest component of total spending b. are already included in measures on consumption, investment, and government spending c. are a source of total spending on U.S. output d. are always positive; i.e., total exports always exceed total imports e. are always positive; i.e., total imports always exceed total exports