Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus:
a) Decrease by 8 percent.
b) Decrease by 1.25 percent.
c) Increase by 8 percent.
d) Increase by 1.25 percent.
Answer: a) Decrease by 8 percent.
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When private ownership rights are well-defined and enforced, owners of physical assets and resources
a. have no incentive to consider the desires of others. b. incur the opportunity cost of ignoring the wishes of others. c. are not responsible if the use of their assets impose harm on others. d. have little incentive to take care of their assets.
Which of the following most accurately indicates changes in the size of the union sector in the United States?
a. As a share of the labor force, union membership grew substantially during 1935 through 1955 but has declined substantially since the mid-1950s. b. As a share of the labor force, union membership declined substantially during 1935 through 1955 but has grown substantially since the mid-1950s. c. As a share of the labor force, union membership has steadily grown from less than 10 percent in 1935 to more than 40 percent today. d. Union membership has been approximately 20 percent of the labor force during the last five decades.
On the graph for a monopolist’s losses, the total loss is shown by ______.
a. area DAQM0
b. curve ATC
c. curve AVC
d. area CBAD
Assume that a consumer purchases only two products. Suppose that the consumer's money income doubles, and the prices of the two products also double. These changes in income and prices will result in:
A. A shift of the budget line inward to the left B. A shift of the budget line outward to the right C. No change in the budget line D. An increase in the slope of the budget line