If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is
A) elastic and the elasticity of supply equals 1.5.
B) inelastic and the elasticity of supply equals 1.5.
C) elastic and the elasticity of supply equals 0.66.
D) inelastic and the elasticity of supply equals 0.66.
E) either elastic or inelastic, but more information about the elasticity of demand is needed to determine which.
A
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Redistribution programs create a disincentive to work among
A) taxpayers only. B) benefit recipients only. C) both taxpayers and benefit recipients. D) neither taxpayers nor benefit recipients.
If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value
a. True b. False Indicate whether the statement is true or false
When a country has the ability to produce more of a good than others with a given amount of resources, they:
A. have an absolute advantage. B. are free-traders. C. have a comparative advantage. D. should remain self-sufficient.
Matteo prepares dinner for his family on Tuesdays and Fridays. Which of the following categories excluded from the GDP does this example belong to?
a. underground economy b. nonmarket transactions c. leisure d. externalities