A perfectly inelastic demand means:
A. consumers will change the quantity they purchase when price changes.
B. demand will drop to zero if the price increases by any amount.
C. consumers will not change the quantity they purchase when price changes.
D. the demand curve is perfectly horizontal.
C. consumers will not change the quantity they purchase when price changes.
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Consider a game where individuals are asked to contribute to a public good. Then consider the best response function for individual i, with individual i's contribution measured on the vertical axis and "the average contribution by everyone else" on the horizontal. Then as the number of individuals increases, i's best response function shifts in.
Answer the following statement true (T) or false (F)
An increase in government expenditure on goods and services
A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.
To measure the annual increase in the capital stock most broadly, we should include
a. business purchases of plant and equipment, changes in inventory, and new home construction b. private investment spending plus government investment spending c. stocks and bonds purchased by firms, total investment, and human capital d. purchases of durable goods and human capital e. net private investment spending, net government investment spending, purchases of durable goods, and investment in human capital
One concern is that while _________________ may be benefiting high-skilled, high-wage workers in the United States, it may also impose costs on low-skilled, low-wage workers.
a. international trade b. blocking trade c. economic decline d. limiting trade