The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 to 60 units. Therefore, demand for X in this price range:
A. has declined.
B. is of unit elasticity.
C. is inelastic.
D. is elastic.
Answer: D
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For a person earning $75000, the marginal tax amount from 40,001 to $75000 is:
A. $5,000
B. $7,500
C. $8,750
D. $14,250
Educated people may generate ideas that increase production. These ideas
a. produce a return to society from education that is greater than the return to the individual. b. could justify government subsides for education. c. are external benefits of education. d. All of the above are correct.
Which of the following will occur if a legal price floor is placed on a good below its free market equilibrium?
A. Surpluses will develop B. Shortages will develop C. Underground markets will develop D. The equilibrium price will ration the good E. The quantity sold will increase
Economic growth is usually defined as
A. the increase in output over time, as measured by real per capita Gross Domestic Product (GDP). B. the rate of increase in output divided by the increase in labor. C. the increase in input availability. D. the reduction in the real cost of necessities.