If the quantity demanded of a product rose from 900 to 1,200 when the price of the product fell from $11 to $9, the price elasticity of demand coefficient is equal to
a. -0.20.
b. -0.70.
c. -1.00.
d. -1.42.
D
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One objection to the notion of Ricardian Equivalence is that ________
A) households will recognize that a tax cut today will only lead to a tax increase in the future B) individuals are short-sighted in their spending decisions C) borrowing constraints have largely been eliminated due to financial innovation in the provisioning of consumer credit D) households typically save most of the monies received from a tax cut
A benefit to increased diversity in the workforce, optimistically speaking, is that _________________ as more workers from traditionally disadvantaged groups are able to fulfill their potential.
a. fewer minority members will need to attend college b. more workers from advantaged groups will move up the ladder c. the economy may recover eventually d. the economy will benefit
When equilibrium GDP is greater than potential GDP, jobs are plentiful and labor is in great demand
a. True b. False Indicate whether the statement is true or false
Comparative advantage in production is achieved by
A. Having a lower opportunity cost of producing a good relative to that of other countries. B. Being able to produce a good with fewer inputs than in other countries. C. Subsidizing, specializing, and lowering the price of an exported good. D. Having terms of trade that are better than the terms of trade faced in other countries.