In economic analysis, people's resources are
A. unlimited and their wants are also unlimited.
B. unlimited and their wants are limited.
C. limited and their wants are also limited.
D. limited and their wants are unlimited.
Answer: D
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Figure 10-4
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Figure 10-4 shows the industry’s supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S2, the firm is
A. going to shut down. B. incurring losses. C. earning zero economic profits. D. earning economic profit greater than zero.
Tacos and pizza are substitutes. If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza, the cross elasticity of demand equals
A) -1/2. B) 1/2. C) 2. D) -2. E) 4.
What is Medicaid?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. If expectations are always met, then firms would never contribute to any of the short-run fluctuations in employment and output that are observed in real-world economies 2. If the prices of goods and services were flexible, then the economy could always produce at its optimal capacity. 3. An unexpected negative demand shock would lead to a decrease in inventories 4. An unexpected negative demand shock would lead to a decrease in real GDP. 5. Sticky prices could be the result of firms being afraid of price wars.