If the absolute value of the slope of the demand curve is 0.25, price is $8 per unit, and quantity demanded is 12 units, then demand for this good is:
A. elastic.
B. inelastic.
C. perfectly elastic.
D. unit elastic.
Answer: A
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The equilibrium of this game indicates
a. Self-interest can sometimes lead to sub-optimal outcomes b. Rationality can sometimes lead to inefficient outcomes c. All of the above d. None of the above
If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A. prices went up, but output stayed the same. B. prices stayed the same, but output went up. C. both prices and output went up. D. both prices and output stayed the same.
Some economists argue that the minimum wage:
A. drives some labor to occur "under the table." B. causes some employers to hire undocumented migrants driving up wages overall. C. leads some employers to pay workers cash and then report these payments to the government. D. All of these are true.
According to the income effect, an increase in the wage rate will lead the worker to
A. work more hours and leisure more hours. B. work more hours if leisure is a normal good. C. work fewer hours if leisure is a normal good. D. not change hours worked. E. work fewer hours if leisure is an inferior good.