The aggregate supply curve is upward sloping in
a. the short and long run.
b. neither the short nor long run.
c. the long run, but not the short run.
d. the short run, but not the long run.
d
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If the absolute value of the price elasticity of demand for a product is 1.5, and the price of a product increased 30 percent, then the quantity demanded will decline by
A) 45 percent. B) 20 percent. C) 5 percent. D) 10 percent.
Which of the following would most likely be an example of market failure?
a. industrial water pollution b. eBay transactions c. tradable pollution permits d. brokers re-selling tickets for concerts
Which of the following is the major difference between the chained consumer price index and the regular consumer price index?
a. The chained index assumes that households purchase the same bundle of goods over a lengthy time period; the regular price index makes allowance for shifts away from goods that have become more expensive. b. The chained index makes allowance each month for shifts away from goods that have become more expensive; the regular consumer price index fails to adjust for these shifts. c. The chained consumer price index reflects changes in the prices of all final goods and services produced during a period, whereas the regular consumer price index reflects only changes in the prices of goods purchased by households. d. The chained consumer price index will generally result in a higher measured rate of inflation than the regular consumer price index.
Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government imposes a pollution tax equal to P1, the marginal benefit to the firm of abating A2 is:
A. P1. B. P2. C. P1 - P2. D. P2 - P3.