Which of the following is false?
a. Products with close substitutes have elastic demand
b. Demand for individual brand is less elastic than industry aggregate demand
c. Products with many complements have less elastic demand
d. In the long run, demand curves become more elastic
b
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What is another term for total surplus?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending?
A. $640 million B. $800 million C. $1 billion D. $1.8 billion
Which one of these groups is counted among the unemployed?
A. Discouraged workers B. People collecting unemployment benefits C. People working part time D. People out of the labor force
If two firms pollute, and the increase in costs to Firm A from decreasing pollution is less than the decrease in costs to Firm B from increasing pollution:
A. the firms will not trade the right to pollute. B. the firms can benefit by trading the right to pollute. C. while both firms can benefit from trading, there is no way for them to determine an agreeable price. D. both firms will stop polluting.