If the price elasticity of supply equals zero, this implies that:
A. suppliers can easily change the quantity supplied of the product as the price of the product changes.
B. the period under consideration is a very long-run time period.
C. the supply curve is perfectly vertical.
D. the percentage change in quantity supplied equals the percentage change in product price.
Answer: C
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The wage elasticity of labor demand is always negative.
Answer the following statement true (T) or false (F)
Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your after-tax wage is
A) $10. B) $20. C) $25. D) $40.
If a firm is not forced to pay for external costs, it will
A) continue to overproduce the good. B) continue to under produce the good. C) request a subsidy from the government. D) raise prices.
Per capita GDP is the most practical way to:
A. Measure how much income households receive. B. Measure how much output can be consumed on a sustainable basis. C. Measure how much output is potentially available to the average person. D. Analyze the growth rate of the economy over time.