Suppose the price P on a given demand curve results in a price elasticity of demand equal to 1. Any price higher than P will lie on the ________ part of the demand curve, and any price lower than P will lie on the ________ part of the demand curve.
A. unit elastic; inelastic
B. elastic; inelastic
C. inelastic; elastic
D. elastic; unit elastic
Answer: B
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Consider the monopsony in the above figure. The 200th hour of labor creates how much added revenue per hour for the monopsony?
A) $10 B) $15 C) $20 D) None of the above answers is correct.
When foreign investors in Thailand began to realize that Thailand could not maintain its peg to the dollar indefinitely, they began to ________ in Thailand and exchange ________. This change in investment by foreigners is termed capital flight
A) purchase more investments; dollars for baht to purchase these investments B) sell off their investments; the dollars they received for baht C) purchase more investments; baht for dollars to purchase these investments D) sell off their investments; the baht they received for dollars
Why do consumers benefit from pay-as-you-go social security?
A) It keeps inflation in check as money is redistributed. B) It is a better way than taxes to finance the government. C) It forces people to save more than they would otherwise. D) With sufficiently high population growth, many young contribute to the benefits of the old.
When attempting price regulation, a government faces what problem(s)?
A) limited information B) bribes C) uncooperative firms D) All of the above.