If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent
a. increase; 0.25
b. decrease; 0.25
c. increase; 4
d. decrease; 25
e. decrease; 4
e
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More bidders increase the selling price at an oral auction because
a. bidders bid more aggressively b. the true value of the winner is higher c. the true values of the losers is higher d. bidders shade their bids by less
The marginal value of a commodity to a consumer
a. increases as more of the good is consumed. b. is exactly equal to price for all units purchased by the consumer. c. is measured by the height of the individual consumer's demand curve. d. is equal to the area above the price and below the individual consumer's demand curve.
Local governments provide law enforcement, which benefits society, but if the costs of law enforcement exceed the benefits, the result is a situation of
A. Government failure. B. Efficiency as long as there is some benefit. C. Market failure. D. Public choice theory.
Which one of the following would increase income inequality as measured by official Census data and the quintile distribution?
A. A doubling of Social Security retirement benefits. B. The elimination of the SNAP program. C. The elimination of the TANF program. D. Reduced divorce rates.