Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the law of supply has been violated.
B) the demand for swimming pool maintenance services has increased.
C) the supply of swimming pool maintenance services has decreased.
D) swimming pool maintenance services are becoming more technologically advanced.
Answer: C
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Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand greater than one indicates demand:
A. for the good is elastic. B. for the good is inelastic. C. for the good is unitary elastic. D. cannot be determined without more information.
The major difference between the for-profit and the not-for-profit organizational form is:
a. patients receive higher quality of care in not-for-profit hospitals. b. shareholders receive higher return on their investment in a not-for-profit environment. c. primarily the ability to transfer assets. d. for-profit hospitals do not provide charity care. e. the absence of a profit motive in the not-for-profit environment.
An example of an oligopoly market would be one in which ___ firm(s) sell(s) ___% of the output.
A. 1; 95
B. 3; 10
C. 4; 80
D. 250; 35
Advocates for a structural solution to the Great Recession argued that:
A. government should cut taxes across the board to stimulate demand for goods and services. B. firms should be allowed to go bankrupt, allowing the economy to correct for resource misallocations. C. firms in financial distress should be taken over by the government and run for the public good. D. massive public works projects should be implemented to produce public capital, keep people employed, and help workers maintain job skills.