Demand tends to be more elastic when:
A. the quantity demanded is larger.
B. demand is perfectly inelastic.
C. price is low and more inelastic when price is high.
D. price is high and more inelastic when price is low.
Answer: D
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One determinant of the derived demand for a resource is the
a. price of the product made using the resource b. extra cost of the resource c. marginal resource cost of the resource d. availability of the resource in the marketplace e. quantity of the resource demanded
Automatic stabilizers have the effect of
a. Increasing aggregate demand when the nation is below full employment. b. Restraining the decline in demand but not stimulating any increase in aggregate demand that would move the nation back toward equilibrium. c. Causing government spending to rise and taxes to rise as a nation moves into a recession. d. Destabilizing a nation, once you consider the active deficits or surpluses they cause.
Which of the following represents a collective action problem?
A) The battery in Billy's pickup truck has died so he must leave his house 90 minutes earlier than usual to take public transportation to work. B) Sonia cuts down a diseased oak tree in her back yard, eliminating the shade that blocked the afternoon sun from shining through her living room windows. C) Miss Lander's third grade class has to cut short their field trip to Insect World because someone in Mr. Rutherford's fourth grade class accidentally opened the safety door in the bumblebee exhibit. D) Most of the audience cannot hear the dialog at a midnight showing of The Room because the film's most ardent fans insist on shouting with the dialog throughout the entire screening.
Economists normally assume that the goal of a firm is to (i) earn profits as large as possible, even if it means reducing output. (ii) earn revenues as large as possible, even if it means reducing profits. (iii) minimize costs, regardless of profits
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)