As more time passes, the price elasticity of gasoline
A) increases.
B) decreases.
C) stays the same.
D) becomes perfectly inelastic.
E) becomes perfectly elastic.
A
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Scarcity can be eliminated by
A) abolishing competition. B) abolishing capitalism. C) abolishing money. D) all of the above. E) none of the above.
Assume that China has a comparative advantage in producing corn and exports corn to Japan. We can conclude that
A) Labor costs are higher for corn producers in Japan than in China. B) China also has an absolute advantage in producing corn relative to Japan. C) Japan has an absolute disadvantage in producing corn relative to China. D) China has a lower opportunity cost of producing corn relative to Japan.
The five most important variables that determine the level of ________ are disposable income, wealth, expected future income, price level, and interest rate
A) consumption B) government purchases C) net exports D) planned investment
Situations of negative interest rates on short-term bonds resulted from:
A) high income tax rates B) government regulations requiring financial firms to purchase government bonds C) very low risk premiums D) investors were looking for safe havens when other investments were perceived to be very risky