The price elasticity of demand for bread is
a. computed as the change in the price of bread divided by the change in the quantity demanded of bread.
b. independent of the availability of close substitutes.
c. influenced by whether consumers view bread as a necessity or luxury.
d. All of the above are correct.
c
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How is economic growth shown in a production possibilities frontier graph?
What will be an ideal response?
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a corporation. What is one advantage to Torrie of setting up her business as a corporation?
A) By setting up the business as a corporation, Torrie would have both ownership and control over the business. B) By setting up the business as a corporation, Torrie would not face double taxation. C) By setting up the business as a corporation, Torrie would have the ability to share risk with shareholders. D) All of the above would be advantages of setting up her business as a corporation.
Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the unemployment rate to decrease. B) the number of discouraged workers to increase. C) no change in the unemployment rate. D) the labor force participation rate to decrease.
Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
a. lead to higher healthcare prices. b. lead to lower healthcare prices. c. reduce the incentive of consumers to economize. d. increase the incentive of healthcare providers to provide their services at a low cost. e. do both a and c above.