An increase in the price of gasoline shifts the demand for tires to the
a. left, because gasoline and tires are substitutes.
b. left, because gasoline and tires are normally used together.
c. right, because gasoline and tires are substitutes.
d. right, because gasoline and tires are normally used together.
b
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Pursuing comparative advantage means
A) adding up the plusses and minuses after a transaction. B) doing it to the other person first. C) making equal, fair exchanges for equally valued goods or services. D) sacrificing something less valuable for the sake of something more valuable. E) seeking relative status rather than absolute welfare.
If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied, then the supply of the good is ________ and the elasticity of supply is ________
A) inelastic; 0.5 B) inelastic; 2.0 C) elastic; 0.5 D) elastic; 2.0
Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics' "unemployed" category
a. True b. False Indicate whether the statement is true or false
Under a balanced budget policy, a sharp rise in GDP will cause
A. no serious budget changes. B. a tax cut or an increase in expenditures. C. a tax increase or expenditure cut. D. tax receipts to exceed government expenditures.