If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate
A) those who are buying pizza value it at least $50 per pizza.
B) those who are not buying pizza value it more than $50 per pizza.
C) only those who are extremely wealthy are buying pizza.
D) the price of pizza needs to be regulated by the federal government.
A
You might also like to view...
The market demand for wheat is ________ and the demand for wheat produced by an individual farm is ________
A) perfectly elastic; perfectly inelastic B) not perfectly elastic; perfectly elastic C) not perfectly inelastic; inelastic D) elastic; unit elastic
During the fiscal expansion associated with the Vietnam war, what type of expenditures was initially "crowded out?"
A) autonomous consumption B) nonresidential fixed investment C) residential construction D) nonresidential construction
The “Taylor rule” for monetary policy provides the Fed with a
A. mechanical prescription for monetary policy. B. benchmark to guide policy decisions. C. time frame for discount rate changes. D. rule for changing the M1 money supply.
Answer the following statement true (T) or false (F)
1) The government's ability to force people to do things can increase economic efficiency. 2) Government's ability to enforce laws and contracts increases private-sector economic risks. 3) The invisible hand guides government's economic activity just as it does with private economic activity. 4) Because of the force of law and bureaucratic structure, government accountability is less of a problem than in the private sector.