If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck.
B. buy fewer soft drinks with his paycheck.
C. no longer afford pizza on his paycheck.
D. Either A or B is possible.
Answer: A
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Refer to Figure 19-5. The Chinese government pegs the yuan to the dollar, at one of the specified exchange rates on the graph, such that it undervalues its currency. Using the figure above, this would generate
A) a surplus of yuan equal to 400 million. B) a surplus of yuan equal to 300 million. C) a surplus of yuan equal to 200 million. D) a shortage of yuan equal to 200 million. E) a shortage of yuan equal to 400 million.
To calculate the price elasticity of supply, we divide
A) rise by the run. B) the average price by the average quantity supplied. C) the percentage change in price by the percentage change in quantity supplied. D) the percentage change in quantity supplied by the percentage change in price.
Public choice theory assumes each voter will tend to support the political candidate who offers
a. programs with the largest benefits to society. b. the highest potential for being a good leader in times of war. c. programs that create the most equal distribution of income. d. to provide the voter with the most personal benefits at the least personal cost.
Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the
a. credit analysts more as a compensating differential. b. sales people more as a compensating differential. c. same salary for both positions because they require the same skill level. d. same salary for both positions because it would be illegal to do otherwise.