If quantity demanded for rice falls by 2% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is:
a. 2.5.
b. 0.25
c. 4.0
d. 0.40.
b
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In a competitive labor market, if the supply of labor decreases, wages will:
A. decrease. B. increase. C. drop to zero. D. remain the same.
Use the following graph to answer the next question. 
The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment. This situation can be best illustrated in the figure above as a ________.
A. shift from AD2 to AD1 B. movement along AD1 from Q4 to Q1 C. movement along AD2 from Q2 to Q3 D. shift from AD1 to AD2
Among the most important demand side factors explaining homes prices would be the
A. average wage paid to carpenters. B. cost of lumber. C. number of homebuilders. D. income of potential homebuyers.
Lines of credit provided by financial intermediaries:
A. are pre-approved loans that can increase liquidity and lowering transaction costs. B. decrease liquidity for customers but increase income for the intermediary. C. are costly for intermediaries to provide so are only available to large commercial customers. D. require deposits in the intermediary that equal or exceed the amount of the line of credit.