When the calculated price elasticity of demand is -0.85, demand is
A) perfectly inelastic.
B) elastic.
C) unit-elastic.
D) inelastic.
Answer: D
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Since 1960, the labor force participation rate in the United States has
A) increased for men and women. B) decreased for men and women. C) increased for men and decreased for women. D) increased for women and decreased for men. E) increased for women and not changed for men.
According to the search model, the marginal cost of acquiring information about a product
a. is greater for a doctor than a nurse's aide b. is the same for high-income consumers as for low-income consumers c. is greater for expensive items than for cheap items d. is greater for cheap items than for expensive items e. diminishes as more information is acquired
Monopolists are criticized because they are inefficient. What is meant by this statement?
a. Monopolists charge too high a price. b. Monopolists don't innovate enough to control pollution. c. Monopolists produce a large quantity of waste. d. Monopolists usually don't produce at the minimum of the ATC. e. Monopolists could use their resources better elsewhere.
When the price of peaches changes, the demand curve for peaches
a. shifts because the price of peaches is measured on the vertical axis of the graph. b. shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph. c. does not shift because the price of peaches is measured on the vertical axis of the graph. d. does not shift because the price of peaches is measured on the horizontal axis of the graph.