Price elasticity of supply is always
A) positive because of the law of supply.
B) negative because of the law of supply.
C) positive because of diminishing marginal utility.
D) negative because percentages can only be negative.
Answer: A) positive because of the law of supply.
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Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,
A) you considered the marginal cost and marginal benefit of your choice. B) you must ignore the problem of scarcity. C) you must have considered the social interest. D) you have made a positive statement. E) you have used the ceteris paribus assumption.
What are the types of institution banks used to conduct foreign business?
A) corporations B) central banks C) commercial banks D) agency offices, subsidiary banks, and foreign branches E) state-owned enterprises
If a supply-side economist were to make a suggestion to stimulate economic activity, which of the following policies would she NOT suggest?
A. An elimination of the corporate income tax B. An elimination of the minimum wage C. A repeal of regulations on business D. The creation of employer-mandated benefits
If supply is more elastic than demand, the seller will pay _____ of a tax.
Fill in the blank(s) with the appropriate word(s).