Which of the following products has the most elastic demand?
A. Ben and Jerry's Chunky Monkey ice cream in the pint container
B. all Ben and Jerry's ice cream
C. all premium ice cream
D. all ice cream
Answer: A
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With no price discrimination,
a. A firm sells every unit at different prices b. A firm sells every unit at same prices c. Low-value groups pay a lower price than the high-value groups d. Low-value groups pay a higher price than the high-value groups
If taxpayers can enjoy mosquito abatement whether or not they pay for it and, therefore, they tend to understate their true valuation of the spraying, this is an example of
a. private goods b. the median-voter model c. an open-access good d. the free-rider problem e. irrational ignorance
New classical economists believe that it is possible under certain circumstances for an increase in the money supply to lead to a decrease in Real GDP in the short run
Indicate whether the statement is true or false
The opportunity cost of leisure will rise if
A. nonlabor income decreases. B. nonlabor income increases. C. the wage rate increases. D. the wage rate decreases.