Which of the following is true about the demand for gasoline?
A) It is probably more price elastic in the long run because price will increase by a higher percentage.
B) It is probably more price elastic in the long run because it is easier to find substitutes for gasoline in the long run.
C) It is probably more price elastic in the short run because price will increase by a higher percentage.
D) It is probably more price elastic in the short run because it is easier to find substitutes for gasoline in the short run.
B
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Lou buys a Star Wars: The Force Awakens poster at a garage sale for $30 and resells it on eBay to Kyle for $60. Which of the following statements is true?
A) The transaction is economically inefficient. B) The transaction has made Lou and Kyle better off. C) The transaction has made Lou better off and Kyle worse off. D) It is not possible for Kyle to enjoy any consumer surplus from this transaction.
In order for an individual to receive a black belt in karate, they must pass a series of tests designed by a third party. An announcement listing those individuals who received their black belt in karate is an example of ________.
A) a trademark B) screening C) moral hazard D) a certification
Historically, investment in stocks have been a prudent investment
A. because stock prices have stayed roughly constant over time. B. because stock prices have generally risen over time. C. because stocks no longer carry any underlying risk. D. because stocks can easily be converted to corporate bonds.
Economics is the study of
A) the allocation of scarce resources to satisfy unlimited wants. B) why some people want certain goods and services. C) earning the most income. D) ways to use fewer resources.