If the price of gasoline rises, buyers will probably
A. spend less on gasoline since the supply for gasoline is probably inelastic.
B. spend less on gasoline since the demand for gasoline is probably elastic.
C. spend more on gasoline since the supply for gasoline is probably elastic.
D. spend more on gasoline since the demand for gasoline is probably inelastic.
Answer: D
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If the federal government ________ during the financial crisis of 2008-2009, the fall in overall stock prices would likely have been larger.
A. had not allowed the large financial institutions to declare bankruptcy B. had bailed out the large financial institutions C. had not bailed out the large financial institutions D. had allowed the sale of the large financial institutions to foreign investors
Use the following graph of an oligopolistic firm.
Suppose all firms within the cartel have identical costs of production. The cartel is earning
A. accounting profit but not economic profit. B. zero economic profit. C. economic profit. D. negative economic profit.
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
A) commodity markets. B) fund-available markets. C) derivative exchange markets. D) financial markets.
Raising taxes:
A. always raises tax revenues. B. always decreases tax revenues. C. can sometimes decrease tax revenues. D. None of these statements is true.