A gas station opened up on the highway in a patch where there are no gas stations close by. It is more likely to be able to set higher prices because
a. the demand for its product is more inelastic due to an unavailability of substitutes
b. the demand for its product is more elastic due to an unavailability of substitutes
c. the demand for its product is more inelastic due to an availability of substitutes
d. the demand for its product is more elastic due to an availability of substitutes
a
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All of the following can be used to reduce risk except which one?
A) settling a law suit B) entering into litigation C) purchasing insurance D) diversifying your stock portfolio
A study attempts to investigate the role of the various determinants of regional Canadian unemployment rates in order to get a better picture of Canadian aggregate unemployment rate behavior
The annual data (1967-1991) is for five regions (Atlantic region, Quebec, Ontario, Prairies, and British Columbia), and four age-gender groups (female and male, adult and young). Focusing on young females, the authors find significant effects for the following variables: the regional relative minimum wage rate (minimum wages divided by average hourly earnings), the regional share of youth in the labor force, the regional share of adult females in the labor force, United States activity shocks (deviations of United States GDP from trend), an indicator of the degree of monetary tightness in Canada, regional union density, and a regional index of unemployment insurance generosity. Explain why the authors only used region fixed effects. How would their specification have to change if they also employed time fixed effects? What will be an ideal response?
Refer to the following graph.
A government-imposed price floor of $2 will result in:
A. neither excess supply nor excess demand since it is not binding. B. neither excess supply nor excess demand since it is binding. C. an excess demand of 2. D. an excess supply of 2.
A decrease in dividend payments will
A. lead to a decrease in labor supply. B. lead to an increase in labor supply. C. have no effect on labor supply. D. either lead to an increase or decrease in labor supply depending on the relative magnitude of the income and substitution effects.