If the price of paperback books increases and consumer expenditures on paperback books also increase, which of the following is necessarily true?
What will be an ideal response?
The demand for paperback books is inelastic.
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Compared to the free-market outcome, if the production of wheat were subsidized by the government,
A) the supply of wheat would increase. B) the quantity supplied of wheat would increase. C) the quantity demanded of wheat would increase. D) all of the above would occur. E) none of the above would occur.
In a simple economy (no government), the vertical distance between the consumption function and the expenditure schedule measures
a. undesired inventory depletion. b. planned investment c. undesired investment. d. unintended investment.
Monopolistic competition displays productive efficiency in the short run, while perfect competition does not display productive efficiency
a. True b. False Indicate whether the statement is true or false
A regressive tax means that if someone earning $25,000 pays $5,000, someone earning $50,000 must pay:
A. Less than $5,000 B. Less than $10,000 C. More than $10,000 but less than $15,000 D. More than $15,000 but less than $20,000