The most important determinant of price elasticity of supply is
A. the price of the good.
B. the number of close substitutes there are for the good.
C. the importance of the good in the budgets of consumers.
D. the time period firms have to adjust to the new price.
Answer: D
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If the total assets of a bank equals $50,000 and the total liabilities of the bank equal $20,000, stockholders' equity will equal:
A) $50,000. B) $70,000. C) $30,000. D) $20,000.
The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads
As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with A) the capture theory of regulation. B) the public interest theory of regulation. C) the share-the-gains, share-the-pains theory of regulation. D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.
Louise is unemployed due to a decrease in the demand for workers with knowledge of a certain word processing language. This is an example of
The goods and services used to calculate the consumer price index represent ________.
A. what an average household buys B. what households, businesses, and government purchase on average C. what households, businesses, and government purchase in total D. every household buys in total