The percentage change in the quantity supplied in response to a percentage change in the price is known as the
A) slope of the supply curve.
B) excess supply.
C) price elasticity of supply.
D) All of the above.
C
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The process in which new technologies replace old ones, new businesses replace existing businesses, and new skills make old ones irrelevant is referred to as:
A) business development. B) creative destruction. C) globalization. D) liberalization.
"Material" wealth cannot be distinguished in any useful way from wealth (with no modifying adjective) because
A) all wealth consists finally of valued experiences. B) material objects are not essential to the creation of wealth. C) wealth includes anything a person can purchase with money, whether material or not. D) wealth usually fluctuates in value while matter cannot be created or destroyed.
A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
In the basic Keynesian model, a tax cut:
A. reduces short-run equilibrium output. B. reduces potential output. C. increases short-run equilibrium output. D. increases potential output.