What is a firm? What other terms do economists use interchangeably with the term "firm"?
What will be an ideal response?
A firm is an organization that produces a good or service. Firms are also called companies or businesses.
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The price elasticity of supply equals the percentage change in the
A) quantity demanded divided by the percentage change in the price of a substitute or complement. B) quantity supplied divided by the percentage change in price. C) quantity demanded divided by the percentage change in price. D) supply divided by the percentage change in the demand. E) quantity supplied divided by the percentage change in the quantity demanded.
In the economic way of thinking, a tax on pollutants
A) unfairly places the burden of pollution reduction on the poor. B) is inefficient because it won't reduce pollution to zero. C) tries to alter relative money costs to reflect new decisions about who has which rights. D) cannot be labeled unfair as long as the tax revenues are used to fund public works projects.