Which of the following does not influence the price elasticity of demand?
A. The length of time.
B. The availability of substitutes.
C. Costs of production.
D. The price of the item relative to the consumer's budget.
Answer: C
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Lorenz curves tell us about the
A. absolute distribution of income. B. poverty line. C. incidence of malnutrition. D. relative distribution of income.
Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to (i) the additional cost of that worker. (ii) the wage paid to that worker. (iii) the marginal product of that worker
a. (i) only b. (iii) only c. (i) and (ii) only d. (ii) and (iii) only
Which of the following practices are, at least in part, attempts to reduce moral hazard problems?
a. The income of waiters and waitresses depends heavily on tips. b. An employer pays below equilibrium wages because he thinks his employees are not working as hard as they could be. c. The professors leaves the room to prevent cheating on exams. d. Tenure professors are not supervised closely.
If the budget line shifts from BB to bb in the above diagram we can infer that the:
A) price of Y has increased and the price of X has decreased. B) price of Y has decreased and the price of X has increased. C) prices of both X and Y have increased. D) prices of both X and Y have decreased.