When a good is taxed, the deadweight loss is larger the more elastic are demand and supply
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the Article Summary. Assume countries initially enacted protectionist measures against Chinese steel imports. If these protectionist measures were eventually eliminated, then all else equal, the price of steel in those countries would ________ and the quantity of steel demanded in those countries would ________.
A) decrease; decrease B) increase; decrease C) decrease; increase D) increase; increase
The median voter model implies that: a. most voters will have about the same preferences for goods and services provided through government
b. a candidate may adopt more extreme views when seeking her party's nomination than during the general election. c. political voting will be as economically efficient as voting with dollars in competitive markets. d. none of the above
Which of the following is true for a monopolist but not for a firm in perfect competition?
A. The marginal revenue curve is downward-sloping. B. Marginal revenue equals price. C. Economic profits are zero in the long-run. D. The marginal revenue curve lies above the demand curve.
If the price of cell phones increases by 5 percent and the quantity demanded falls by 2 percent, the absolute value of the price elasticity of demand is
A. 5 percent. B. 0.4. C. 5.0. D. 2.1.