Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by.
A) 200 percent
B) 20 percent
C) 2 percent
D) 0.2 percent.
Ans: C) 2 percent
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Which of the following statements is correct?
a. Two examples of early antitrust laws are the Clinton and Stigler Antitrust Acts. b. Antitrust laws automatically prevent mergers between companies that produce similar products. c. Antitrust laws reduce the government's power to regulate private companies. d. Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.
The market system:
A. produces considerable inefficiency in the use of scarce resources. B. effectively harnesses the incentives of workers and entrepreneurs. C. is not consistent with freedom of choice in the long run. D. has slowly lost ground to emerging command systems.