A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours. Economists explain the fare difference by the fact that the demand for bus rides during the morning rush hours is ________, but during the late morning it is ________.
A. more elastic; more inelastic
B. more inelastic; more elastic
C. perfectly elastic; perfectly inelastic
D. unit elastic; relatively inelastic
Answer: B
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An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as
A) a contingent worker. B) a productive worker. C) a marginally attached worker. D) an unemployed worker.
Suppose the new doctor you found in the yellow pages turns out to be a charlatan. This is an example of
a. natural selection b. moral hazard c. hidden actions d. external costs e. hidden characteristics
Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes it sporadically. If the price of Diet Coke rises, Jane decreases her consumption by only a very small amount. But if the price of gourmet cheese rises, Jane decreases her consumption by a lot. These examples illustrate the importance of
a. the availability of close substitutes in determining the price elasticity of demand. b. a necessity versus a luxury in determining the price elasticity of demand. c. the definition of a market in determining the price elasticity of demand. d. the time horizon in determining the price elasticity of demand.
Which of the following does an efficiency wage primarily aim to combat?
a. consolidation of a minimum wage b. formation of unions c. dereliction of duties d. rising inflation