Suppose that when price is $10, quantity supplied is 20. When price is $6, quantity supplied is 12 units. The price elasticity of supply is:
A. 0.5.
B. 0.8.
C. 1.0.
D. 1.5.
Answer: C
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If the price of film increases, the demand for film processing would decrease; moreover, the equilibrium price and quantity of film processing should also decrease
a. True b. False
Congressman A promises to vote for a bill that Congressmen B and C are sponsoring, and in return both B and C promise to vote for a future bill that A is sponsoring. This practice is called
A) cutting "red tape." B) chasing the median voter. C) rational ignorance. D) logrolling.
Buying a house during a recession may be a good idea if your job seems secure because the Federal Reserve often lowers interest rates during a recession
Indicate whether the statement is true or false
The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds. b. has a strong education system. c. has secure property rights. d. has a tax system that encourages savings.