In which of the cases given below will the elasticity of demand for workers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is:
A. 5, and labor's share of total costs is 20 percent
B. 5, and labor's share of total costs is 75 percent
C. .1, and labor's share of total costs is 20 percent
D. .1, and labor's share of total costs is 75 percent
C. .1, and labor's share of total costs is 20 percent
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In the above figure, if the firm increases its output from Q1 to Q2, it will
A) reduce its marginal revenue. B) increase its marginal revenue. C) decrease its profit. D) increase its profit.
A __________ good is one that once produced and provided to one person, provides benefits to other persons.
A. consumption B. investment C. private D. public
If monetary policy is used to control GDP, there is greater sacrifice of long-run economic growth in pursuing short-run stabilization the ________ is fiscal policy and thus the ________ is the real interest rate
A) tighter, higher B) tighter, lower C) easier, higher D) easier, lower
A ___________ exchange rate is a policy to allow the foreign exchange market to set the exchange rate of a currency.
a. pegged b. floating c. set d. dynamic