When the demand for a product does not fluctuate when there is a change in price, the good is ________.
a. inelastic.
b. elastic.
c. unit elastic.
d. perfectly inelastic.
Answer: d. perfectly inelastic.
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According to the classical model, workers chose a level of labor that equates the
a. real wage and marginal product of labor. b. nominal wage and marginal product of labor. c. the marginal utility of consumption and the marginal disutility of lost leisure. d. the marginal utility of consumption with the real wage.
The portion of the four-sector circular flow model which shows the flow of funds from savers to borrowers is the:
a. product market. b. factor market. c. savings market. d. financial market.
Recall the Application about using value added to measure the size of Walmart to answer the following question(s). According to this Application, why is the value of Walmart's 2017 sales NOT an accurate measurement of its actual sales impact on the U.S. economy?
A. The sales figure did not account for chain-weighted inflation measurements. B. The sales figure includes the value of purchases from other firms. C. The sales figure did not take into account the recession of 2008. D. The sales figure was in nominal, not real dollars.
If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of yen is ________.
A. $5 B. $.05 C. $.005 D. $.50