If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of
a. higher prices.
b. higher output.
c. lower prices.
d. lower output.
d
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When Susan makes the statement, "The government should spend less money to take care of national parks," she is
A) making a normative statement. B) making a positive statement. C) testing an economic model. D) not dealing with scarcity.
One reaction of firms to the adverse selection problem is to
A) rely on internal funds to finance investment. B) use the stock market rather than the bond market to raise funds. C) use the bond market rather than the stock market to raise funds. D) borrow long-term rather than short-term.
A ________ monopoly is a market structure in which a monopoly producer sells to a monopoly distributor.
A) successive B) double C) dual D) two-stage
Which of the following helps determine the growth rate of potential GDP? I. capital accumulation II. technology advances III. growth in the quantity of money
A) I B) I and II C) I and III D) I, II and III