If supply is highly inelastic and demand shifts to the right:
A. price and quantity will hardly change at all.
B. price will hardly change at all; quantity will rise significantly.
C. price probably will rise significantly; quantity hardly changes at all.
D. price will rise significantly as will quantity.
Answer: C
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College students often spend summers in internships that pay little or no income because internships provide benefits in the form of higher future incomes
a. True b. False
Which term refers to the share of an activity's marginal cost that is paid for by the persons who carry out the activity?
a. Beneficial cost b. Incidental cost c. Marginal private cost d. Marginal social cost
Lauren makes $150 a day as a bank clerk. She takes two days off work without pay, to fly to another city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is $250. The cost of the concert ticket is $50. The
opportunity cost of Lauren's decision to attend the concert is: A. $600 B. $450 C. $300 D. $250
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.