The price elasticity of supply
a. is a number between 0 and 1.
b. measures the percent change in quantity supply as a result of a 1-percent change in price
c. measures the percent change in quantity supplied as a result of a 1-percent change in cost.
d. measures the shift in supply as the result of a price change
e. measures the movement of a supply curve along a fixed demand curve
B
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The aggregate demand for good X is Q = 20 - P, and the market price is P = $8. What is the maximum amount that consumers are willing to pay for the quantity demanded at this price?
A) $72 B) $96 C) $144 D) $168
The opportunity cost of a decision is the
A) value of the best alternative not chosen. B) value of all the alternatives not chosen. C) cost of making the wrong choice. D) cost incurred by others who are unhappy with your decision.
There is uncertainty about the precise level of the natural rate of unemployment
a. True b. False
Norma receives an increase in her nominal income. She complains that the current inflation rate of six percent erodes the real purchasing power of her additional nominal income. This is true
a. only if the increase in her nominal income is less than six percent. b. only if the increase in her nominal income is more than six percent. c. since inflation always reduces purchasing power. d. only if her real income increases.