A tariff will typically
A. increase the price, net of the tariff, that is received by sellers.
B. increase the price paid by consumers.
C. reduce the price paid by consumers.
D. have no effect on price.
Answer: B
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Four points on a demand schedule are given: $12, 2 units; $10, 1 unit; $15, 1.5 units; and $2, 4 units. Which combination is inconsistent with the law of demand?
A) $12 and 2 units B) $10 and 1 unit C) $15 and 1.5 units D) $2 and 4 units
The objective of an economic model is to
a. be an accurate description of reality b. yield better understanding of important relationships c. use simplifying assumptions to make positive economic statements d. use basic principles of economics to derive fundamental assumptions about human behavior e. predict real-world occurrences with complete accuracy
Suppliers would be less eager to organize to restrict output if they faced a:
A. more elastic demand. B. perfectly inelastic demand. C. less elastic demand. D. unit-elastic demand curve.
Capital stock is defined as the retail value that was paid for a firm's productive assets.
Answer the following statement true (T) or false (F)