The price elasticity of supply measures how
A. responsive the quantity supplied of Y is to changes in the price of X.
B. responsive quantity supplied is to a change in incomes.
C. easily labor and capital can be substituted for one another in the production process.
D. responsive the quantity supplied of X is to changes in the price of X.
Answer: D
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Which of the following is most likely to be able to sustain economic growth in an economy?
A) increases in capital per hour worked B) technological change C) sustained increases in the labor force participation rate D) accumulations of economic resources
The authors claim that monopolists will tend to practice stronger conservation of depletable resources than would occur under a perfectly competitive market structure. Why is this true?
A) Monopolists are typically taxed at higher rates than competitive firms, so they will tend to reduce output and revenues in order to minimize their tax expenditures. B) The profit-maximizing decisions of a monopolist tend to generate lower output levels than under perfect competition, so the resource is depleted at a slower rate by the monopolist. C) Common property resource problems do not arise when there is only one seller. D) The lower depletion rate used by monopolists serves as a barrier to entry.
Finite-sample distributions of the OLS estimator and t-statistics are complicated, unless
A) the regressors are all normally distributed. B) the regression errors are homoskedastic and normally distributed, conditional on X1,... Xn. C) the Gauss-Markov Theorem applies. D) the regressor is also endogenous.
The lower the discount rate relative to the federal funds rate, the more likely a commercial bank will borrow from
A) another commercial bank instead of the Fed. B) the Fed instead of another commercial bank. C) the U.S. Treasury instead of either the Fed or another commercial bank. D) the public.