Neither the demand nor the supply of gasoline is perfectly elastic or inelastic. When the government increases the federal tax on gasoline, the effect on buyers is that the price they pay
A) rises.
B) falls.
C) does not change.
D) rises if the demand is inelastic and falls if the demand is elastic.
E) rises if the supply is inelastic and falls if the supply is elastic.
A
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If Microsoft sells a bond in London and it is denominated in dollars, the bond is a
A) Eurobond. B) foreign bond. C) British bond. D) currency bond.
The law of increasing opportunity cost helps to explain why PPF's are typically bowed-outward
Indicate whether the statement is true or false
Which of the following will most likely occur under a system of clearly defined and enforced private property rights?
a. Resource owners will fail to conserve vital resources, even if they expect their scarcity to increase. b. Resource owners will ignore the wishes of others, including others who would like to use the resource that is privately owned. c. Resource owners will fail to consider the wishes of potential future buyers when they decide how to employ privately owned resources. d. Resource owners will gain by discovering and employing their resources in ways that are highly valued by others.
The data on U.S. nominal interest rates and inflation rates tends to:
A. serve as evidence against the Fisher Effect, since nominal interest rates and inflation rates seem to move in opposite directions. B. serve as evidence against the Fisher Effect, since nominal interest rates and inflation rates seem to move in the same direction. C. provide support for the Fisher Effect, since nominal interest rates and inflation rates seem to move in opposite directions. D. provide support for the Fisher Effect, since nominal interest rates and inflation rates seem to move in the same direction.