One of the business revolutions of the 1980s is "just in time" inventory, a system where businesses estimate their requirements for raw materials and keep no more on hand than is necessary to complete that period's production. What affect did the change to "just in time" inventory have on short-term supply elasticities?
What will be an ideal response?
"Just in time" inventory made supply more inelastic since there are not enough inputs to production on hand to allow quick increases in the rate of production.
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Mergers between companies producing widely divergent goods is called a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
The difference in the price the buyer pays and the price the sellers keep in the presence of a tax is called:
A. a tax differential. B. a tax wedge. C. the tax incidence. D. the tax burden.
The longest expansion of the United States economy since 1925 began in:
A. 1961. B. 1991. C. 1982. D. 1945.
The production possibilities curve illustrates
A. The existence of unlimited wants and resources. B. The limitations that exist because of scarce resources. C. That there is no limit to the level of output. D. That there is no limit to what an economy can produce.