An increase in the equilibrium price and the equilibrium quantity would be caused by an increase in demand
a. True
b. False
Indicate whether the statement is true or false
True
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Some would cite the purchase of defective products and the rising cost of health care as market failures. Argue that these are not true market failures
When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than $1.00
a. True b. False Indicate whether the statement is true or false
National saving
a. is the total income in the economy that remains after paying for consumption. b. is the total income in the economy that remains after paying for consumption and government purchases. c. is always greater than investment for a closed economy. d. is equal to private saving minus public saving.
Price elasticities are calculated for four goods, and the values are: 5.5; 3.5; 1.0; 0.2. Which price elasticity is most elastic?
A) 5.5 B) 3.5 C) 1.0 D) 0.2