The right answer to the debate regarding the welfare effects of advertising is that
A. advertising always improves the functioning of the market.
B. advertising always leads to positive economic profits in an industry.
C. advertising always leads to concentration in an industry.
D. there is no right answer.
Answer: D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Suppose the demand curve for committing robbery can be represented by a downward sloping demand curve. In other words, as the price of committing a robbery falls, more robberies will be committed
Now, suppose laws are passed allowing people to carry guns unconcealed in public. Which of the following best explains the likely outcome? A) Demand for robberies will fall. B) Supply of robberies will increase. C) The elasticity of robberies will be perfectly inelastic. D) The quantity demanded of robberies will decrease because the price of robberies has risen.
"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.
The elasticity of demand for labor will be less the
A) longer the time period. B) easier it is to substitute one input for another. C) less the demand elasticity for the final product. D) larger the share of total costs accounted for by labor.