The demand for a good is elastic. Which of the following would be the most likely explanation for this?
A. The time interval considered is long.
B. The good costs a small portion of one's total income.
C. The good is broadly defined.
D. The good is a necessity.
Answer: A
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As more firms are attracted to an industry, the supply curve can be expected to shift to the right
a. True b. False Indicate whether the statement is true or false
Economic growth causes:
A. a movement away from the production possibility curve. B. the production possibility curve to shift in. C. the production possibility curve to shift out. D. a movement toward the production possibility curve.
Suppose a country's government is deciding whether or not to impose an import quota to protect the domestic automobile industry. Will the domestic steel-producing firms be in favor of a quota designed to protect the local automobile producers? Why or why not?
What will be an ideal response?
Perfect competition is characterized by many firms and no barriers to entry.
Answer the following statement true (T) or false (F)