Graphically, a kinked demand curve is
a. more elastic to the right of the kink than to the left
b. more inelastic to the right of the kink than to the left
c. more inelastic to the left of the kink than to the right
d. present when there is a monopoly
e. bowed-in or bowed-out, depending on the kink
B
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Typical consumption taxes create an incentive to save
Indicate whether the statement is true or false
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What is the equation for the worker's opportunity set? (E is total earnings and L is leisure.)
A. E = 192 ? 8L B. E = 292 ? 8L C. E = 100 ? 8L D. None of the statements is correct.
The alternative quantities demanded for a given time period at different possible prices is known as
A) absolute demand. B) a demand schedule. C) real demand. D) constant demand.
Goods that are very useful and highly desired are likely to be
A) expensive if they are relatively abundant. B) inexpensive if they are relatively abundant. C) inexpensive if they are relatively rare. D) expensive no matter if they are relatively abundant or rare.