Income elasticity will be positive for:
A. all normal goods.
B. only necessities.
C. only luxury goods with substitutes.
D. all inferior goods.
Answer: A
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Suppose the labor force in Tiny Town is 100 people. If the ________ in Tiny Town is 150 people, the labor force participation rate equals ________ multiplied by 100
A) working age population; 100/150 B) working age population; 100/250 C) number of employed persons; 100/250 D) number of employed persons; 100/150
The price charged by a monopolist is socially inefficient because the price
A) exceeds the true marginal cost of the resources used. B) is less than the opportunity cost of the resources used. C) puts the monopolist into a higher tax bracket. D) is too low.
A monopsonist can pick the ____, while a monopolist can pick ____
a. the price it will charge; the wage it will pay b. the wage it will pay; the price it will charge c. the market price for its output; the quantity it will produce d. marginal product of labor; the marginal cost of labor e. number of competitors; the number of buyers
Corn is a key ingredient in food as well as in biofuel production. If the production of corn remains constant, an increase in the demand for corn products as food will decrease the _____ corn for biofuels
a. supply of b. demand for c. supply and demand for d. quantity supplied of