The main reason for the high price of antiques is that
A. supply is relatively inelastic and demand tends to increase over time.
B. supply is relatively elastic and demand tends to increase over time.
C. demand is relatively inelastic and supply tends to increase over time.
D. demand is relatively elastic and supply tends to increase over time.
Answer: A
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If interest rates rise in the United States and remain the same in the South Pacific, then what can we expect to occur in the foreign exchange market for yaps (South Pacific currency)?
a. nothing b. an increase in its equilibrium price c. a decrease in its equilibrium price d. a shift in the supply of yaps e. an increase in the equilibrium quantity of yaps
The Italian government collects a smaller amount of the taxes it is owed than the U.S. government. Other things being equal,
a. U.S. and Italian GDP should be equal. b. U.S. GDP should be higher than Italian GDP. c. U.S. GDP should be lower than Italian GDP. d. U.S. residents are better off than Italian residents.
The demand curve for a monopolistic competitor is likely to be flatter than that of a monopolist.
Answer the following statement true (T) or false (F)
Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP) allotments. Suppose the most conservative Republican suggests an increase in defense spending. The Republican says that, on average, military spending does the most good, so more is better. The Democrat is arguing that the extra food purchased by the extra spending will increase well-being the most. What is going on here?
A. Only the Democrat is using marginal analysis. B. Both are employing marginal analysis, just from different perspectives. C. Neither are using marginal analysis. D. Only the Republican is using marginal analysis.