The rising price of oil has made it feasible to extract oil out of oily sand in Canada. Concerning the oil market this is an example of
A) a higher price elasticity of supply in the long run.
B) a higher price elasticity of supply in the short run.
C) a higher price elasticity of demand in the short run.
D) an inelastic long-run supply of oil.
A
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As the number of days without rain increases, the amount of wheat grown per acre declines. A graph showing this relationship shows
A) a vertical line. B) a positive relationshi
How is a tariff different from a quota?
a. A tariff sets a limit on the quantity of a good that may be imported, while a quota is a tax on an import. b. A tariff and a quota are different words for the same thing. c. A tariff is a tax on an import, while a quota set a limit on the quantity of a good that may be imported. d. None of the above are correct.
If Stephen earns $100,000 this year and pays $20,000 in taxes and Chris earns $50,000 this year and pays $5,000 in taxes, this tax system would appear to be a. progressive
b. proportional. c. regressive. d. none of the above
Exchange controls used by a country's government to maintain an overvalued exchange rate result in considerable costs to the country. Explain the situation with a diagram and use it to show the deadweight loss. Explain why bribery and parallel markets can arise in economies with exchange controls.
What will be an ideal response?