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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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?
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