In the figure above, when the price falls from $5 to $4, the price elasticity of demand is
A) 2.
B) 3.
C) 0.75.
D) 1.5.
E) 0.33.
B
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Which of the following is a trend in the U.S. labor force participation rate over the last 50 years?
a. The overall labor force participation rate has decreased. b. The gender makeup of the labor force participation rate has stayed roughly the same. c. The labor force participation rate for men has fallen. d. The labor force participation rate for women has fallen.
When tradable allowances are used to correct negative externalities in a market, the outcome:
A. maximizes surplus. B. limits the quantity bought and sold to the efficient level. C. is efficient. D. All of these statements are true.
Exhibit 9-2 A monopolistic competitive firm
?
Comparing the firms in a monopolistic competitive industry shown in Exhibit 9-2 to a perfectly competitive firm in long-run equilibrium, we find that both firms
A. choose a price equal to the marginal cost at the profit-maximizing quantity. B. will experience entry of new firms into the industry. C. earn zero economic profits. D. minimize cost per unit at their profit-maximizing quantity.
Suppose policy makers wish to increase steady state consumption per worker. Explain what must happen to the saving rate to achieve this objective
What will be an ideal response?