If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
A. greater than .27.
B. perfectly inelastic.
C. less than .27.
D. equal to .27.
Answer: A
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Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
A. Increase the number of lumberjacks with chain saws and observe the change in output of cut trees B. Increase the number of workers on an assembly line and record the change in output C. Increase the number of data entry operators and computers and calculate the extra output. D. Check the number of workers before and after a given time period.
Which of the following documents established "rules of the game"?
A) The Book of Exodus B) The Scrabble Players Dictionary C) The Bylaws of the AFL-CIO D) The Constitution of South Africa E) All of the above.
Which of the statements below best captures the meaning of competition as discussed in Chapter 5?
A) Competition is a process; it makes everyone in the society better off even though there can only be one winner. B) Competition is an individualist system in which people do not concern themselves with the welfare of others. C) Competition is the law of the jungle producing social wealth. D) Competition is the process of trying to outdo others. E) Competition occurs when people strive to satisfy the criteria others are using to allocate valued goods.
An austerity policy is
A) an increase in the money supply. B) an expenditure reduction and expenditure switching policy. C) an expansionary fiscal policy accompanied by decreases in taxes, increases in expenditures, or both. D) an exchange rate switching policy from a fixed to a flexible exchange rate system. E) None of the above.