The price elasticity of supply when the supply curve is Q = 5 is
A) 5.
B) perfectly inelastic.
C) perfectly elastic.
D) Cannot be calculated from the information provided.
B
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In the short-run, a supply shock will lead to
A) movement of prices and output in the same direction. B) movement of prices and output in opposite directions. C) a sustained inflation. D) a movement in prices, but not output.
The t-statistic measures
A) the efficiency of the t-test relative to the standard z-test. B) the probability that the estimated coefficient is within the range of the standard error. C) whether the estimated coefficient is independent of the standard error. D) whether the estimated coefficient is large relative to the standard error.
Figure 5-18
In Figure 5-18, point D for the consumer
a.
will be chosen because total utility is larger there than at point C.
b.
would not be chosen because it is less desirable than point C.
c.
is unattainable, given the consumer's budget.
d.
has total utility equal to point C.
Which statement is true?
A. Natural monopolies may occur in theory, but there are virtually no actual examples in today's economy. B. All forms of a monopoly are illegal in the United States. C. Many public utilities are natural monopolies. D. None of these statements are true.