If the quantity of rental units increases by 10 percent when the monthly rental price doubles, the supply of rental units, other factors held constant, is:
A. elastic.
B. inelastic.
C. perfectly elastic.
D. perfectly inelastic.
Answer: B
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Consider an apple orchard owner deciding how to incentivize his fruit pickers to get them to pick more apples he should:
a. To pay the pickers per pound of apples picked b. To pay the pickers an hourly rate c. To pay the pickers an hourly rate plus a bonus d. To not pay the pickers
It can be difficult to define and enforce property rights against damaging pollutants when
a. many polluters are harming one person. b. many polluters harm the same large group of people with the same pollutant. c. the harms are difficult to quantify. d. All of the above are true.
Which of the following WOULD NOT be considered an automatic stabilizer for the economy?
A. Welfare payments B. Unemployment compensation C. The progressive income tax D. An income tax surcharge
When the output per hour of workers is high, the real wages of the workers will also be high.
A. True B. False