The price of season tickets to a performing arts theater decreases by 3%. As a result, the quantity demanded increases by 6%. The price elasticity of demand for season tickets is
A. -2.
B. -18.
C. -9.
D. -0.5.
Answer: A
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A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?
A. natural B. frictional C. structural D. cyclical
Relative to the prices that would be observed in an uncontrolled market, prices charged in a black market are generally
A. lower, since sellers have trouble locating buyers. B. lower, since buyers have trouble locating sellers. C. higher, since black market sellers compensate for the risk of being caught. D. higher, since most buyers enjoy goods more if they are illegal.
When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume
A) the girl was made worse off while John was made better off. B) the girl was made better off while John was made worse off. C) both parties were made worse off. D) both parties were made better off.
Which of the following is likely to cause a decrease in both the wage rate and the level of employment in an industry?
A) A right shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the supply curve for labor, without any change in the demand curve for labor C) A right shift in the demand curve for labor, without any change in the supply curve for labor D) A left shift in the demand curve for labor, without any change in the supply curve for labor