Suppose you are on a committee seeking to increase revenue from your city's bus system. If demand is _______, you would recommend raising the fare
a. perfectly elastic
b. elastic
c. unitary elastic
d. inelastic
d
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Which of the following is a necessary characteristic of a public good? The good is
A) excludable. B) nonrival. C) nonexcludable. D) Both answers B and C are correct.
Which of the following would cause a leftward shift in the supply curve for car washes?
A. An increase in the number of cars in the city B. A decrease in taxes on car washes C. An increase in the price of car washing equipment D. A decrease in the price of water
The reserve ratio equals 10 percent. The Fed buys $1 million in U.S. government securities. The most the money supply can increase is
A. $0.1 million. B. $100 million. C. $90 million. D. $10 million.
Diagram a model of a perfectly competitive market and a separate model of a firm experiencing economic profits. Explain and illustrate on your models the changes that take place in the long run. Be sure to explain why any changes take place.
What will be an ideal response?