Elasticities are often lower in the short run than in the long run
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose a scientific breakthrough made free solar power available in unlimited quantities in the United States. The effect of this invention would be to move the
A) United States beyond its production possibilities frontier. B) United States inside its production possibilities frontier. C) U.S. production possibilities frontier outward. D) U.S. production possibilities frontier inward.
Free entry eliminates long-run profits for firms in competitive and monopolistic industries
a. True b. False Indicate whether the statement is true or false
State and local governments receive most of their revenue from
A. property taxes, sales and excise taxes, and Social Security contribution. B. individual income taxes, social insurance contributions, and property taxes. C. corporate income taxes, property taxes, and personal income taxes. D. sales and excise taxes, revenue from the federal government, and property taxes.
Suppose that when the price of root beer rises 10%, the quantity of hotdogs demanded falls 5%. This would mean that hotdogs and root beer are
A. substitutes, with a cross price elasticity of 0.5. B. substitutes, with a cross price elasticity of -2.0. C. complements, with a cross price elasticity of -0.5. D. complements, with a cross price elasticity of -2.0.