A 10 percent increase in the price of tablets leads to a 1 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is
A) 9.
B) 1.
C) 0.1.
D) 10.
Answer: C
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The labor supply curve may have a backward-bending portion if, at higher wages, the income effect is
a. smaller than the substitution effect. b. larger than the substitution effect. c. negative. d. Any of the above could result in a backward-bending supply curve.
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 20%, Nashbar Bicycle's total investment would be
A. $0. B. $100,000. C. $500,000. D. $700,000.
The free-rider problem arises if goods are
A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. a and d
If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the participation rate is measured as
A) U/N B) Q/U C) Q/N D) (Q-U)/N