Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $12 to $10 is
A. -1.37.
B. -0.33.
C. -1.
D. -3.29.
Answer: C
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The figure above shows the market for college education. The efficient quantity of education is
A) 0 students. B) 4 million students. C) 6 million students. D) more than 6 million students. E) more than 4 million students and less than 6 million students.
According to your authors, a necessary condition for the evolution of a successful commercial society includes
A) stable interest rates. B) reasonably secure property rights. C) a superabundance of natural resources. D) zero economic losses.
Which of the following is true when the government attempts to move the economy to full employment by increasing spending?
A. The desired stimulus should be set by the multiplier divided by the AD shortfall. B. The total change in spending includes both the new government spending and the subsequent increases in consumer spending. C. It must initially spend more than the GDP gap if the aggregate supply curve is upward-sloping. D. The desired stimulus should be set by the AD shortfall multiplied by the multiplier.
Wealthy people will tend to have vertical labor supply curves
A) only if their income effect just offsets their substitution effect. B) only if their income effect is greater than their substitution effect. C) only if their income effect is less than their substitution effect. D) only if they don't have an income effect.