When there are very few substitutes for a good, the demand for the good will tend to be
A) inelastic.
B) elastic.
C) unitary.
D) perfectly elastic.
Answer: A
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The major difficulty with using a tax on pollution instead of a fixed percentage reduction regulation is:
A. that it only works in theory. B. that firms would not pay the tax. C. establishing the optimal size of the tax. D. that it would cause prices to rise.
Christina Romer's estimates of the business cycles prior to World War II showed that the business cycle
A) had greater fluctuations before World War II than previous estimates had shown. B) had smaller fluctuations before World War II than previously estimated. C) had smaller fluctuations before World War II than after World War II. D) had larger fluctuations after World War II than had been previously measured.
Comparing firms in perfectly competitive markets to monopoly firms, which produces more output?
According to the text, the portion of total U.S. national income spent on health care was about ________ in 2015 as opposed to about ________ in 1965
A) 34 percent; 17 percent B) 17 percent; 34 percent C) 6 percent; 17 percent D) 17 percent; 6 percent