For a given decrease in demand, the effect on price is largest and the effect on quantity exchanged smallest when:
a. supply is perfectly elastic
b. supply is elastic.
c. supply is unit elastic.
d. supply is perfectly inelastic.
d
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Consider two economies: Barylia and Lithasia. The GDP per capita in Lithasia is $6,000 while the GDP per capita in Barylia is $12,000. Both countries grow exponentially at an annual rate of 10%
How will their GDPs vary over the next year? Is there any limitation of comparing the absolute levels of GDP per capita of both countries over the next years? If yes, what is a plausible solution?
The above figure shows a restaurant engaged in monopolistic competition with other restaurants. The equilibrium quantity at this restaurant is ________ meals per day
A) less than 150 B) between 151 and 250 C) between 251 and 350 D) between 451 and 450 E) more than 451
Output price changes cause substitution effects and scale effects. ?
Answer the following statement true (T) or false (F)
Assume that there is a proposed tax cut by the U.S. House of Representatives. A problem is
a. how to distribute the benefits of the total tax cut among different groups within the country. b. that the process occurs very quickly without much time to study any negative effects. c. that tax cuts are harder to implement than tax increases. d. that the Federal Reserve has almost invariably been in favor of moderate tax increases rather than tax cuts. e. this statement is wrong, as tax bills originate in the U.S. Senate.