Because suppliers can more readily adjust their output in the long run than in the short run, we expect price elasticity of supply to be
a. negative in the long run and positive in the short run
b. positive in the long run and negative in the short run
c. greater than one in the short run and less than one in the long run
d. higher in the long run than in the short run
e. higher in the short run than in the long run
D
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If a larger percentage of Americans attended college, the wage premium would probably
a. continue rising. b. continue falling. c. rise. d. fall.
A decrease in the tax rate is more likely to increase the standard of living if the income effect of a change in the interest rate is
a. small and an increase in private saving tends to have a small impact on the capital stock. b. small and an increase in private saving tends to have a large impact on the capital stock. c. large and an increase in private saving tends to have a small impact on the capital stock. d. large and an increase in private saving tends to have a large impact on the capital stock.
Which of the following is the correct sequence of events for this graph?
a. Q1 moves to QSR; Q1 moves to QLR; P1 moves to P2 b. Q1 moves to QSR; P1 moves to P2; Q1 moves to QLR c. P1 moves to P2; Q1 moves to QLR; Q1 moves to QSR d. P1 moves to P2; Q1 moves to QSR; Q1 moves to QLR
If the marginal tax rate is less than the average tax rate, the tax system is
A) progressive. B) proportional. C) regressive. D) flat.