The price elasticity of demand is useful because it measures the responsiveness of _____ to changes in _____.
A) taxpayers; demand
B) producers; supply
C) consumers; price
D) consumers; demand
E) producers; income
Ans: C) consumers; price
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In a Malthusian world, what would improve the standard of living temporarily?
A) a war B) a new virus C) birth control D) democracy
One of the differences between microeconomics and macroeconomics is the use of fiscal policy. Fiscal policy is conducted by:
a. local banks. b. a nation’s central bank. c. a nation’s legislative body. d. a state’s legislative body.
Why do you never see firms in a perfectly competitive market advertise their product?
What will be an ideal response?
Which of the following statements concerning efficiency is correct?
A. If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue. B. Economists advocate high prices for abundant resources and low prices for scarce resources. C. If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads. D. All of these options are desirable in promoting efficient use of scarce road space.