If the percentage change in quantity demanded divided by the percentage change in price equals 1, then
a. supply is inelastic
b. supply is elastic
c. demand is elastic
d. demand is inelastic
e. demand is unit elastic
E
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Which of the following is true?
a. The actual result of changing behavior following the rule of rational choice will always make people better off. b. The actual result of changing behavior following the rule of rational choice will never make people better off. c. In terms of the rule of rational choice, zero levels of pollution would be far too costly in terms of what we would have to give up to achieve them. d. The rule of rational choice implies that it is impossible to be too safe.
Harry Truman is credited with the statement, "Give me a one-armed economist," because economists are likely to say, "On the one hand, . . . on the other hand." Why do economists "waffle" more than physicists or chemists?
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real credit market with demand for real credit shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the right. d. Start the analysis in the real credit market with supply of real credit shifting to the left. e. Start the analysis in the real credit market with supply of real credit shifting to the right.
Typically, as a firm hires additional workers, the marginal product of labor
a. decreases, and the value of the marginal product of labor decreases. b. stays constant, and the value of the marginal product of labor decreases. c. decreases, and the value of the marginal product of labor stays constant. d. decreases, and the value of the marginal product of labor increases.