If the price elasticity of supply for a good becomes more elastic over time
A. quantity supplied becomes more sensitive to price.
B. quantity demanded is not sensitive to price.
C. quantity supplied becomes less sensitive to price.
D. quantity demanded is very sensitive to price.
A. quantity supplied becomes more sensitive to price.
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Which of the following transactions would be included in the official calculation of GDP?
A) You wash and wax your father's car as a favor to him. B) You illegally download music off the Internet to put on your new iPod. C) You buy a new iPod. D) A student buys a used textbook at the bookstore. E) Firestone sells $2 million worth of tires to General Motors.
Under a barter system
A) each good has many prices. B) each good has a single price. C) no prices for goods exist. D) prices for goods are very stable.
If the government regulates the price a natural monopolist can charge to be equal to the firm's marginal cost, the government will likely need to subsidize the firm
a. True b. False Indicate whether the statement is true or false
Which of the following will cause a leftward shift in the aggregate demand curve?
A. a reduction in government spending B. an increase in taxes C. a reduction in the money supply D. all of these