If the price of corn falls by 25 percent on world markets, causing American corn consumption to increase by 10 percent, ceteris paribus, the price elasticity of demand for corn in the United States would be
A. 2.50.
B. 0.75.
C. 0.30.
D. 0.40.
Answer: D
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The profit-maximizing level of labor, in a union-dominated labor market, occurs where
A. MRP = marginal wage. B. Marginal wage = marginal factor cost. C. Marginal wage = zero. D. MRP = marginal factor cost.
Other things the same, if prices fell when firms and workers were expecting them to rise, then
a. employment and production would rise. b. employment would rise and production would fall. c. employment would fall and production would rise. d. employment and production would fall.
If firms make a profit in the short run, firms will exit the market in the long run.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30