Consider a competitive market where the demand and the supply depend on the current price of the good. Then fitting a line through the quantity-price outcomes will
A) give you an estimate of the demand curve.
B) estimate neither a demand curve nor a supply curve.
C) enable you to calculate the price elasticity of supply.
D) give you the exogenous part of the demand in the first stage of TSLS.
Answer: B) estimate neither a demand curve nor a supply curve.
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The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest forty percent of the population own what percent of wealth?
A) 40 percent B) 50 percent C) 60 percent D) 100 percent
What happens in the secondary market?
A) a corporate financial manager will raise funds for expansion of the firm B) secondary inputs like electricity are sold C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another
The study of decision making that assumes people are rational in a broad sense, even if they do not have complete and perfect information is called _____
a. rational economics b. reasonable economics c. understandable economics d. behavioral economics e. optimal economics
The short-run market supply curve in a perfectly competitive industry
a. shows the total quantity supplied by all firms at each possible price b. is perfectly inelastic at the market price c. is perfectly elastic at the market price d. shows how much output each individual firm will supply at various possible prices e. is usually downward sloping