Which of the following is an example of a good with elastic supply in the short run?
(A) Plums
(B) Large hand-made rugs
(C) Passenger airplanes
(D) Sandwiches
Ans: (C) Passenger airplanes
You might also like to view...
How can tax simplification be beneficial to the economy?
What will be an ideal response?
As capacity utilization in an economy rises:
a. firms sell their fixed assets to remain solvent. b. the gap between the potential output and actual output widens. c. firms reduce their demand for labor. d. employment of inputs by firms declines. e. firms add more factories and machines and increase output.
There is widespread agreement across the political spectrum that the only way to break the cycle of poverty and welfare dependency is to
A. provide abortion on demand. B. put every able-bodied person to work. C. enact a negative income tax. D. throw everyone off welfare.
Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are
a. complementary goods. b. normal goods. c. inferior goods. d. substitute goods.