Price elasticity of demand indicates the consumer response to changes in:
A. Quantity.
B. Demand.
C. Price.
D. Supply.
Answer: C. Price.
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U.S. net export spending falls when
A) the inflation rate is lower in the United States relative to other countries. B) the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries. C) the value of the U.S. dollar decreases relative to other currencies. D) the price level in the United States falls relative to the price level in other countries.
Building a good reputation in the marketplace:
A. is easy to fake. B. can take a long time to establish. C. is not a significant value to a seller. D. All of these statements are true.
Refer to the information above. Which of the following represents the steady-state growth rate of output in this economy?
A) 2% B) 3% C) 5% D) 10% E) 15%
The crowding model of discrimination suggests that:
A. women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. B. employers having high discrimination coefficients will be crowded out by nondiscriminating employers in the long run. C. firms will base hiring decisions on group averages, rather than on individual characteristics and productivity. D. occupational segregation is largely the result of freely made rational choices of women and minorities.