A price floor set above the equilibrium price is not binding
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose a tax is imposed on baseball bats. In which of the following cases will the tax cause the equilibrium quantity of baseball bats to shrink by the smallest amount?
a. The response of buyers to a change in the price of baseball bats is strong, and the response of sellers to a change in the price of baseball bats is weak. b. The response of sellers to a change in the price of baseball bats is strong, and the response of buyers to a change in the price of baseball bats is weak. c. The response of buyers and sellers to a change in the price of baseball bats is strong. d. The response of buyers and sellers to a change in the price of baseball bats is weak.
A bank's secondary reserves include its
A. holdings of long-term bonds issued by large corporations. B. passbook saving account balances (a liability to the bank). C. holdings of corporate stock. D. holdings of 6-month Treasury bills.
If GDP grows more rapidly than population for a particular country over a period of time, then we can determine that
A. GDP must rise at a slower rate in the future. B. GDP per capita has increased. C. All citizens of this country are better off. D. Real GDP has decreased.
The price elasticity of demand for labor will be smaller, the
A) greater is the price elasticity of demand for the final product. B) easier it is to employ substitute inputs in production. C) smaller is the proportion of wage costs in the total cost of production. D) longer is the time period under examination.