Zach Ketchup

Sole proprietorships produce only a small fraction of annual sales in the U.S. economy because sole proprietorships A. are the most heavily taxed businesses. B. mainly are small businesses. C. use the factors of production less efficiently. D. have less f...

A music store holds a half-price sale on all CDs. During the sale, people buy more CDs than usual. What does this event show? A. inelasticity of demand B. the substitution effect C. the law of demand D. the income effect

Which is a fixed cost? A. rent B. labor C. raw materials D. heating fuel

How does an increase in an excise tax on cars affect the supply of cars? A. More cars will be made. B. Fewer cars will be made. C. Supply will stay the same. D. Supply will increase.

Due to an increase in her rent, Isa needs to cut back her spending on other items. Which of the following types of goods will Isa consume less of? A. substitutes B. normal goods C. inferior goods D. complements

The price of cranberry juice suddenly increases. As a result, Glenda begins drinking more grape juice, which is less expensive, but tastes just as good to her. In this case, Glenda’s elastic demand is due to A. availability of substitutes. B. relative imp...