Elasticity is
a) a measure of how much buyers and sellers respond to changes in market conditions
b) the study of how the allocation of resources affects economic well-being
c) the maximum amount that a buyer will pay for a good
d) the value of everything a seller must give up to produce a good
Answer: a) a measure of how much buyers and sellers respond to changes in market conditions
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Which of the following statements is true?
A) Economic growth always reduces poverty. B) Economic growth is ineffective in reducing both poverty and inequality. C) Economic growth always reduces inequality. D) Economic growth can reduce poverty only if it is not associated with a significant rise in inequality.
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the market for citrus fruit in 2004
A) the supply curve shifted to the left resulting in an increase in the equilibrium price. B) the demand curve shifted to the right resulting in an increase in the equilibrium price. C) the demand curve shifted to the left resulting in a decrease in the equilibrium price. D) the supply curve shifted to the right resulting in an increase in the equilibrium price.
When faced with an economic loss, a competitive firm will shut down its operations in the short run
a. True b. False Indicate whether the statement is true or false
The question of how much labor a firm will hire comes down to:
A. the amount of capital that will be required in order to ensure the worker is productive. B. whether added workers are going to generate more revenue or not. C. if the added workers are going to add profits to the firm. D. whether the value of the marginal product is greater than, less than, or equal to the average total cost.