If the price elasticity of demand for a good is 2, then a 10 percent decrease in the quantity demanded must be the result of
a. a 0.2 percent increase in the price.
b. a 2.5 percent increase in the price.
c. a 5 percent increase in the price.
d. a 20 percent increase in the price.
c
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U.S. labor productivity slowed during the 1970s because of
i. increasing government taxes and regulations on production. ii. the necessity to cope with energy price increases. iii. inflation, which shortened the horizon over which businesses made their borrowing plans. A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction
Indicate whether the statement is true or false
Occupational licensing
a. provides access to employment opportunities for many new workers b. typically benefits employees in the licensed occupation c. enables the supply curves of labor to shift more readily in response to wage changes d. is illegal in the United States e. usually results in higher employment levels in the licensed occupation
Which of the following is most likely to result in unemployment?
a. Aggregate demand grows more rapidly than aggregate supply. b. Aggregate demand and aggregate supply grow at the same rate. c. Aggregate supply grows more rapidly than aggregate demand. d. Neither aggregate demand nor aggregate supply grows at all.