If all of the following examples are inelastic, which one will most likely have a decrease of revenue?
a. The price of cameras rises.
b. The price of milk falls.
c. The quantity supplied of lipstick declines.
d. The quantity supplied of perfume remains constant.
b. The price of milk falls.
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Division of labor increases the output of society by
A) eliminating scarcity. B) reducing the choices people have to make to a more manageable number. C) ensuring that people are happier in performing their work. D) allowing resources to specialize in the tasks for which they have a comparative advantage.
When a price ceiling prevents a higher market price from rationing a good,
a. a surplus of the good will develop. b. scarcity of the good will be eliminated. c. non-price factors will play a more important role in the rationing process. d. the future supply of the good will expand rapidly.
Which of the following is most likely to reduce the incidence of employee shirking?
a. use of the corporate business structure, rather than an individual proprietorship b. closely relating the pay of workers to their productive contribution c. payment of identical wage rates to all workers d. providing workers with a year-end bonus if the business firm loses money during the year
From 1978 to 1995, the rate of growth of output per worker in China appears to be
A) the result of capital accumulation. B) the result of technological progress. C) the result of trade barriers. D) equal to that of the United States. E) none of the above