Which of the following is not a determinant of Price Elasticity of Demand?
(a) Availability of close substitutes.
(b) Adjustment time.
(c) The level of supply in the market.
(d) The proportion of income spent on the product.
Answer: (c) The level of supply in the market.
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Involuntary part-time workers are:
A. short-term unemployed workers. B. chronically unemployed. C. considered out of the labor force. D. not counted as unemployed.
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They reduced SRAS, causing real output and employment to decline.
The insight that people can always arrive at efficient solutions to the problems caused by externalities if they can negotiate the purchase and sale of the right to perform activities that cause externalities is called the ________.
A. prisoner's dilemma B. Sherman Act C. Coase Theorem D. tragedy of the commons
If national real GDP grows at twice the rate of population growth,
A. real per capita GDP growth will double each year. B. eventually there will be too much GDP. C. real per capita GDP will double each year. D. real per capita GDP will be reduced by half each year.