If the tax elasticity of supply is 0.6 and tax rates increase by 10 percent, the quantity of labor supplied will
A. Decrease by 1.67 percent.
B. Increase by 6 percent.
C. Decrease by 6 percent.
D. Increase by 1.67 percent.
Answer: C
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The most widely used approach for the analysis of oligopoly behavior is
a. game theory. b. role playing. c. strategic engineering. d. input-output analysis.
The quantity of reserves that banks must hold against deposits is called
A) the reserve ratio. B) excess reserves. C) total reserves. D) required reserves.
Technically the elasticity number is negative because
A. When price falls quantity demanded will rise, but for simplicity economists take the absolute value of the elasticity number. B. When price rises quantity demanded will rise, but for simplicity economists take the absolute value of the elasticity number. C. The demand curve is upward-sloping. D. When price falls quantity demanded will fall, but for simplicity economists take the absolute value of the elasticity number.
Total factor productivity growth is that part of economic growth due to
A. capital growth times labor growth. B. capital growth plus labor growth. C. capital growth less labor growth. D. neither capital growth nor labor growth.