Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply?
A. 0
B. 2
C. 4
D. 5
Answer: B
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Betty and Wilma are the only two cashiers employed at a retail store. Each of them works the same 40 hours per week. By manually entering the price of each product purchased into the cash register, Betty can check out 20 customers and Wilma can check out 30 customers per hour. The store owner replaces the old cash registers with new ones that automatically scan product prices into the register. With the new cash registers, Betty and Wilma can each check out 60 customers per hour. Their average labor productivity as a team before the new cash registers were introduced was ________ customers per hour and ________ customers per hour after the new machines were installed.
A. 50; 60 B. 50; 120 C. 1,000; 2,400 D. 25; 60
The optimal level of military expenditures is the level at which _____
a. a country is completely protected from foreign invasion b. a country spends more on national defense than all other countries along it to win an arms race c. a country spends more on national than its rivals d. the marginal benefit of additional expenditures equals marginal cost
Only at the point of consumer equilibrium does the marginal rate of substitution (MRS) equal the:
a. slope of the budget line. b. slope of the indifference curve. c. price ratio. d. all of these.
Who was one of the first proponents of employing market economies instead of command economies?
a. Robert Heilbroner. b. Karl Marx. c. Jeffrey Sachs. d. Adam Smith.