A tax on a good whose demand is perfectly price inelastic will be effective in discouraging consumption of that good.
Answer the following statement true (T) or false (F)
False
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After the point of diminishing marginal returns
A) marginal product rises. B) production should stop. C) marginal product falls. D) marginal product shifts from negative to positive.
Refer to Figure 5-4. Suppose the point labeled B is the “halfway point” on the demand curve and it corresponds to a price of $5.00. Then, between prices of $4.99 and $5.01, the price elasticity of demand is
a. less than 1 but greater than zero. b. equal to 1. c. greater than 1. d. equal to zero. e. equal to infinity.
The view that many welfare mothers have baby after baby to keep their welfare checks rising is a view held by
A. many conservatives. B. many liberals. C. both many liberals and conservatives. D. neither many liberals nor many conservatives.
The Smithsonian Agreement of 1971 was hailed by President Nixon as a fundamental reorganization of the international monetary system. In fact, what it accomplished was
A) the revaluation of the dollar. B) the devaluation of the dollar. C) an increase of the gold content of the dollar. D) the elimination of gold backing for the dollar.