The price elasticity of supply tells us:
A. in which direction the quantity supplied changes as we move along the supply curve.
B. how quickly the supply will respond to a change in price.
C. the magnitude of shift in the supply curve in response to a change in price.
D. the percentage change in quantity supplied when the price of the good changes by one percent.
Answer: D
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Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) discretionary fiscal policy. B) interest-rate policy. C) monetary policy. D) exchange-rate policy.
Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per quart. The relative price of milk is
A) 2 slices of pizza per quart. B) 0.5 slices of pizza per quart. C) $2 per quart. D) 0.5 quarts per slice of pizza.
An example of a good that is rival in consumption is:
A. public utilities. B. a hamburger. C. national defense. D. radio signals broadcast over the air.
What two factors are necessary for demand?
a. desire for a good or service and its availability in the market b. desire for a good or service and the ability to pay for it c. the availability of a good or service and the ability to pay for it d. familiarity with a good or service and the desire to pay for it