The long-run price elasticity of demand for a product is generally ________ the short-run elasticity for the same product.
A. higher than
B. lower than
C. equal to
D. not comparable to
Answer: A
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Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from
A) point A to point E. B) point A to point G. C) point F to point G. D) point A to point F.
Which is the most accurate statement?
A. The authority to run welfare programs resides mainly in the states. B. The authority to run welfare programs resides mainly in the federal government. C. When the 1996 welfare reform passed, it immediately removed 3 million people from the welfare rolls. D. The welfare reform law of 1996 will virtually abolish welfare by the year 2008.
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.
Refer to the graphs shown. The market is fat-free potato chips that contain the fat substitute olestra. Which graph best represents the impact of increased consumer concern about the effects of olestra on long-term health?
A. Graph a B. Graph b C. Graph c D. Graph d