If a one percent increase in the population leads to a five percent increase in the quantity sold, an economist would claim
A) the good is elastic with respect to population.
B) the good is inelastic with respect to population.
C) the good is a fad.
D) consumers are misinformed about the quality of the product.
A
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Which of the following items will be included in official U.S. GDP statistics?
A. Robert paying Ted for a haircut in Chicago. B. Money spent to clean up a local toxic waste site in Ohio. C. The dollar value of the annoyance felt by local citizens living near a noisy airport in Georgia. D. Revenue generated by illegal marijuana growers in Oregon. E. Revenue generated by legal medical marijuana sales in California. F. Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas.
Which of the following decreases in labor demand is due to a change in the price of a related resource?
A. A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry. B. The rise of hair salons for both men and women reduces the demand for barbers. C. A decrease in the educational skills of manufacturing workers decreases the demand for such workers. D. An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer.
Economists who identify a goal and then design a mechanism to achieve that goal are engaging in:
A. choice architecture. B. laissez-faire policies. C. setting money prices. D. mechanism design.
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a gallon of milk?
A) 1 2/3 dozen eggs B) 3/5 of a dozen eggs C) $2.50 D) $1.50