Necessities such as food and shelter have inelastic demand
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money
A) no change; an increase B) a decrease; a decrease C) an increase; an increase D) a decrease; an increase E) an increase; a decrease
We think about the cost of supplying labor as the:
A. the additional equipment and training that is required when hiring a person. B. input costs that go into producing a unit of labor. C. opportunity cost of the individual's time. D. average wage in the labor market.
Suppose Laqueta deposits $10,000 of cash into a checking account at a commercial bank. The immediate effect is
a. a $10,000 decrease in the M1 money supply. b. no change in the M1 money supply, but in the future, the M1 money supply will tend to decrease because the bank now has excess reserves. c. no change in the M1 money supply, but in the future, the M1 money supply will tend to expand because the bank now has excess reserves. d. a $10,000 increase in the M1 money supply.
If the tax on gasoline increases from $2 to $4 per gallon, the deadweight loss from the tax increases by a factor of
a. one-half. b. two. c. four. d. six.