Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount
a. True
b. False
Indicate whether the statement is true or false
False
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The value of marginal product of the tenth worker hired by a firm is $50. What is the maximum wage that should be paid to the worker?
A) $5 B) $500 C) $50 D) $0.20
Once a country has a comparative advantage in producing a product, it cannot lose that advantage
Indicate whether the statement is true or false
A successful compensation scheme
A) must induce effort from workers and ensure that both employer and employees benefit. B) must allow employees to participate in a firm's profits. C) must pay workers with comparable skills a comparable wage. D) must enable workers to enjoy a certain standard of living and must enable employers to earn a normal rate of return.
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:
a. fall by 50 percent. b. rise by 50 percent. c. increase by 100 percent. d. decrease by 100 percent.