Income elasticity of demand measures how ____________________.
A. responsive the quantity of one good demanded to a change in the price of another good
B. the consumption of various goods and services respond to change in income
C. the quantity demanded responds to a change in price
D. responsive the quantity supplied is to a change in price
B. the consumption of various goods and services respond to change in income
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The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring
A) 800 hours of labor at a wage of $5 per hour. B) 600 hours of labor at a wage of $10 per hour. C) 400 hours of labor at a wage of $5 per hour. D) 200 hours of labor at a wage of $5 per hour.
Today, people changed their expectations about the future. This change a. can cause a movement along a demand curve
b. can affect future demand but not today's demand. c. can affect today's demand. d. cannot affect either today's demand or future demand.
A decrease in the price of a nonlabor input such as machinery
A) shifts the SRAS curve to the right. B) shifts the SRAS curve to the left. C) causes an upward movement along the existing SRAS curve. D) causes a downward movement along the existing SRAS curve. E) none of the above
Which of the following statements is false?
A. The Standard Oil trust forced its rivals out of business. B. The Clayton Act expressly exempted labor unions from prosecution under the Sherman Act. C. The judge in the Microsoft case concluded that the company used anticompetitive means to maintain a monopoly for its PC operating system software. D. The rule of reason originated in the ALCOA case of 1945.