To determine an appropriate congestion tax, an economist has to assume that people respond to incentives
Indicate whether the statement is true or false
TRUE
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Of the types of business organizations in the United States, corporations account for ________ percentage of revenues and ________ percentage of profits
A) the largest; the largest B) the smallest; the largest C) neither the largest nor smallest; the largest D) largest; neither the largest nor smallest
A gamble can be described as "fair" if the expected value of the gamble (including any costs of play) is
a. positive. b. zero. c. negative. d. one.
Which of the following reduced aggregate demand and thereby contributed to the crisis of 2008?
a. a rise in the value of the U.S. dollar b. falling housing and stock prices c. an increase in the real rate of interest d. optimism about future economic conditions
How does the concept of elasticity allow us to improve upon our understanding of supply and demand?
a. Elasticity allows us to analyze supply and demand with greater precision than would be the case in the absence of the elasticity concept. b. Elasticity provides us with a better rationale for statements such as "an increase in x will lead to a decrease in y" than we would have in the absence of the elasticity concept. c. Without elasticity, we would not be able to address the direction in which price is likely to move in response to a surplus or a shortage. d. Without elasticity, it is very difficult to assess the degree of competition within a market.