Natural gas is difficult to store. What implication does this fact have for the elasticity of supply of natural gas?
What will be an ideal response?
Because natural gas is difficult to store, the supply of natural gas is inelastic. With few storage facilities, it is very difficult (at least in the short run) to increase the quantity supplied by much even when prices rise substantially.
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Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?
A. It is slow. B. It is not very reliable. C. It works only when supplemented by automatic stabilizers. D. All of these responses are correct. E. Options a and b only are correct.
How can a warranty at the seller's expense signal that a product is high quality?
What will be an ideal response?
A tax that that takes the same percentage of a taxpayer's income regardless no matter what their total income is called a _____
a. proportional tax b. progressive tax c. head tax d. regressive tax
Which of the following would be counted as a final good for inclusion in GDP?
a. A piece of glass bought this year by a consumer to fix a broken window. b. A sheet of glass produced this year by Ford for windows in a new car. c. A tire produced this year and sold to a car maker for a new car sold this year. d. None of these would be counted in GDP.