Refer to the accompanying figure. What is the price elasticity of demand when the price of rice is $6 per pound?
A. 2
B. 0.5
C. 3
D. 0.67
Answer: A
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Under which one of the following contracts does an agent have the least incentive to behave opportunistically?
A) The agent pays a fixed fee to the principal for the right to all future payoffs. B) The agent works for the principal on an hourly basis. C) The agent receives a share of the profit. D) The agent works for the principal on a per unit basis.
Which of the following is true for a competitive buyer?
A) AE = ME B) AE > ME C) AE < ME D) AE greater than or equal to ME
Which statement is true?
A. Poor people generally receive Social Security benefits. B. Medicaid is an "in-kind" benefit paid to poor people. C. Nearly all of the poor receive public assistance. D. None of these statements are true.
If the demand curve is a straight line and has the normal negative slope, then as quantity demanded increases, demand
a. becomes more elastic b. becomes more inelastic c. is unitary elastic d. rises and then falls e. is an inverse function of supply