The fact that when the price of a good goes up, people buy less of it is known as the
A) law of supply.
B) law of demand.
C) concept of market equilibrium.
D) need for inferior goods.
B
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Refer to Figure 5-1. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does S1 represent?
A) the market supply curve reflecting marginal social cost B) the market supply curve reflecting implicit cost C) the market supply curve reflecting external cost D) the market supply curve reflecting marginal private cost
In the present, most of the exports from China are
A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) overpriced by world market standards.
If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be
a. relatively price elastic b. relatively income elastic c. relatively price inelastic d. unit elastic e. infinitely elastic
If the physical plant for a corporation is considered to be a fixed input, then
a. it is held constant in the long run b. it can be changed in the long run c. labor must be a variable input d. technology must be changing e. the firm will lose money in the short run, except under perfect competition