As price increases, demand typically
a. becomes more elastic
b. becomes less elastic
c. does not change
d. elasticity does not change
b
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Refer to Table 4-8. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.00; Q = 390,000 B) W = $8.50; Q = 380,000 C) W = $10.00; Q = 390,000 D) W = $9.50; Q = 380,000
Nancy loves to landscape her yard, but her neighbor Tom places a low value on his landscaping. When Tom's grass is neglected and gets long, Nancy will mow for Tom. This is an example of: a. the fallacy of composition
b. a pollution tax. c. a private solution to a negative externality problem. d. how lazy Tom is.
If the government wants to reduce the burning of fossil fuels, it should impose a tax on
a. buyers of gasoline. b. sellers of gasoline. c. either buyers or sellers of gasoline. d. whichever side of the market is less elastic.
The term economy refers to the structure of economic life, or economic activity, in a community, a region, a country, a group of countries, or the world
Indicate whether the statement is true or false