The argument that supply for apartments is more elastic in the long run is based on the idea that
A. landlords will rent only what they have.
B. people will change apartments quickly when there are small changes in rent.
C. it is costly to move to a different location.
D. it takes time to refurbish existing apartments or build new ones.
Answer: D
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When the prices of U.S.-produced goods rise and the price of foreign-produced goods do not change, the result is
A) an increase in exports. B) a decrease in exports. C) a decrease in imports. D) no change in imports or exports.
Economists agree that the U.S. economic performance in the 1990s was remarkable in that
a. high unemployment was coupled with high economic growth, a coupling that never existed before b. full employment was achieved, albeit with substantial inflation c. more business cycles appeared than in any previous decade d. the severity of the cycles—three in number—were the most pronounced in American cycle history e. it represented the longest, sustained prosperity in American history
The tax burden will fall most heavily on sellers of the good when the demand curve
A. is relatively flat, and the supply curve is relatively steep. B. is relatively steep, and the supply curve is relatively flat. C. and the supply curve are both relatively flat. D. and the supply curve are both relatively steep.
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. This suggests that
a. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will export coffee. b. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will import coffee. c. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will export coffee. d. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.