There are many excellent substitutes for water in almost all American cities because
A) the demand for water is elastic.
B) the demand for water is inelastic.
C) the supply of water is limited.
D) there are so many alternative drinks readily available in the marketplace.
E) water is cheap, and people therefore use it for many different purposes.
E
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In monopolistic competition, barriers to entry give the firms the power to set their price
Indicate whether the statement is true or false
Other things remaining the same, if a nation's price level rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.
Which of the following situations is clearly inconsistent with the law of diminishing marginal utility?
a. Even a person with a huge appetite will eventually turn away food at an all-you-can-eat buffet. b. Some western ski areas close down when there is still considerable snow in the mountains in May because they can no longer attract enough skiers to the slopes. c. Newcomers to the California coast visit the beach much more frequently than long-term residents or natives. d. Diamond jewelry consumption has no disutility to the elite class as it signals prestige.
The multiplier effect
a. and the crowding-out effect both amplify the effects of an increase in government expenditures. b. and the crowding-out effect both diminish the effects of an increase in government expenditures. c. diminishes the effects of an increase in government expenditures, while the crowding-out effect amplifies the effects. d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.