Income elasticity of demand measures how
a. the quantity demanded changes as consumer income changes.
b. consumer purchasing power is affected by a change in the price of a good.
c. the price of a good is affected when there is a change in consumer income.
d. many units of a good a consumer can buy given a certain income level.
a
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Native-born workers are more likely to be harmed by immigration if:
A. They are complementary resources to immigrant workers B. They are substitute resources to immigrant workers C. Demand for their labor is inelastic D. There is a substantial amount of backflow
If the minimum wage is set
A) above the equilibrium wage rate, it will create unemployment. B) equal to the equilibrium wage rate, it will create a shortage of labor. C) below the equilibrium wage rate, it will create unemployment. D) equal to the equilibrium wage rate, it will create a surplus of labor. E) below the equilibrium wage rate, it will create a shortage of labor.
The price elasticity of demand is measured as the percentage change in quantity demanded divided by the percentage change in price
Indicate whether the statement is true or false
When comparing market and public sector decision making, which statement is NOT true?
A. Self-interest is the motivating force in each decision making arena. B. Collective (political) outcomes and economic outcomes may differ. C. In both decision making sectors, there are scarcity constraints. D. In both decision making sectors, majority rule is how things are done.