A price increase from $43 to $49 results in an increase in quantity supplied from 220 units to 240 units. The price elasticity of supply in this price range is (use the midpoint formula)
A. 1.50.
B. 3.33.
C. 0.67.
D. 0.3.
Answer: C
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Suppose the demand curve for committing robbery can be represented by a downward sloping demand curve. In other words, as the price of committing a robbery falls, more robberies will be committed
Now, suppose laws are passed allowing people to carry guns unconcealed in public. Which of the following best explains the likely outcome? A) Demand for robberies will fall. B) Supply of robberies will increase. C) The elasticity of robberies will be perfectly inelastic. D) The quantity demanded of robberies will decrease because the price of robberies has risen.
free-rider is a person or firm that ________ from a good or service ________.
A) does not benefit; by paying for it B) benefits; by paying for it C) does not benefit; by paying double the price for it D) benefits; without paying for it
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Percentage change in nominal GDP during the past year b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current real exchange rate e. Current nominal exchange rate
Would we expect the "average" person to take more time to learn about the car he or she is considering purchasing or about the issues in the upcoming U.S. Senate race in his or her state?
A) The Senate race, because it is critical that we elect the right people to government. B) The car, but there is no rational reason for this. C) The Senate race, because the person who is elected senator today may become president tomorrow. D) The car, because a mistake here can potentially cause him or her more harm on a day-to-day basis; in addition, a person is unlikely to be able to determine the outcome of a Senate race.