If the demand for a product is elastic, the quantity demanded changes by a smaller percentage than the percentage change in price
Indicate whether the statement is true or false
FALSE
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If the labor force grows faster than the number employed, the
A. unemployment rate will fall. B. unemployment rate will rise. C. labor force rate will rise. D. employment rate will rise.
Refer to Figure 15-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) A to B. C) B to C. D) C to B. E) C to D.
Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies
a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines?
Diamonds are nature's hardest substance. Classify each of the following diamonds as land, labor, capital, entrepreneurship, or none of the above. Explain your choice.
a . an unmined diamond b. a diamond in DeBeers' vault (DeBeers is the world's biggest diamond mining company.) c. a diamond in a jeweler's display case at the shopping mall d. a diamond on your or your fiancée's finger e. an industrial-grade diamond in your dentist's drill f. the diamonds in the blade that the highway department uses to cut concrete