If 50 units are sold at a price of $20 and 80 units are sold at a price of $15, what is the absolute value of the price elasticity of demand? Use the midpoint formula
A) 0.17
B) 0.62
C) 1.62
D) 5
Answer: C
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Refer to the figure above. What is the initial equilibrium employment and wage rate?
A) 10 units of labor and $25 B) 20 units of labor and $25 C) 30 units of labor and $15 D) 10 units of labor and $35
In general in the real world labor market the:
A. price effect usually dominates, and thus we assume a downward sloping supply curve. B. income effect usually dominates, and thus we assume a downward sloping supply curve. C. price effect usually dominates, and thus we assume an upward sloping supply curve. D. income effect usually dominates, and thus we assume an upward sloping supply curve.
Public choice theory indicates that the behavior of people in government
a. differs from the behavior of people in the private sector because they are motivated by the public interest rather than their own personal self-interest. b. differs from the behavior of people in the private sector because public sector decision roles do not allow people to pursue their own self-interests. c. is the same as people in the private sector only if decisions are made by majority vote. d. is best understood by applying the same principles we use to predict the behavior of people in the private sector.
Davis and Huttenback (1982) find evidence to support the claim that the colonists were overtaxed by England
Indicate whether the statement is true or false