How would economists interpret the following facts? Fact: Over the past two decades the relative price of new textbooks has risen dramatically. Another fact: Record numbers of new textbooks have been purchased by students over the past two decades
A) The law of demand has been violated.
B) The law of supply has been violated.
C) The supply and demand process in new textbooks hasn't worked correctly.
D) The demand for textbooks has increased.
E) The facts aren't true.
D
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The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).
A nation's production possibilities curve should, ceteris paribus, shift
A. Inward if gross investment exceeds depreciation. B. Outward if net investment is positive. C. Inward if net investment is zero. D. Outward if gross investment is positive.
A carbon tax placed on coal:
A. would decrease the price of coal. B. would cause some producers of goods and services, like cars, to switch to other forms of energy. C. is unlikely to affect the demand for alternative forms of energy. D. would increase the quantity of coal demanded at every price.
One year into the crisis, Argentina's interest payments were roughly equal to
A) 100 percent of exports. B) 60 percent of exports. C) 45 percent of exports. D) 10 percent of exports.