If steel workers obtain a substantial wage increase, employment in the steel industry will be most likely to fall if
a. the demand curve for steel is highly inelastic.
b. the demand curve for steel is highly elastic.
c. the demand curve for steel workers is highly inelastic.
d. there are no good substitutes for steel.
B
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The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
When the Fed wishes to reduce the economy's money supply, it
a. lowers the discount rate b. lowers the legal reserve requirement c. reduces the margin requirement d. sells some of its government securities e. prints more money
Economists argue that in treating patients:
A. physicians should use any test or procedures that might help the patient. B. health care should not be rationed by physicians because it is an entitlement or right. C. both benefits and costs should be taken into account by physicians. D. physicians should use any test or procedure whose marginal benefit is positive.