Demand for a good becomes more elastic as:
a. the number of substitutes available declines.
b. the time period under consideration becomes shorter.
c. a good makes up a larger percentage of a consumer's budget.
d. a good makes up a smaller percentage of a consumer's budget.
e. the producer has more time to respond to price changes.
c
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If a city decides to restrict the number of pizza parlors,
A) the price of pizza will increase. B) pizza parlors will make higher profits. C) total welfare will decrease. D) All of the above.
Suppose a change in technology increases the marginal product of labor. The result is a(n):
A. downward movement along the demand for labor curve. B. rightward shift in the demand for labor curve. C. leftward shift in the demand for labor curve. D. upward movement along the demand for labor curve.
Unions will be more successful where
A. it is easy for competitors to enter the industry. B. globalization is less extensive. C. it is easy for the company to hire replacement workers. D. the state government has passed a "right-to-work" law.
Both classicals and Keynesians agree that policymakers
A. can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. B. cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. C. cannot exploit the Phillips curve in the short run. D. can exploit the Phillips curve in the short run.