For a given product, income elasticity of demand relates the percentage change in:
a. quantity demanded to the percentage change in income.
b. quantity demanded to the absolute change in income.
c. income to the percentage change in price.
d. price to the absolute change in quantity demanded.
e. income to the percentage change in quantity available for sale.
a
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In the figure above, the quantity of low-skilled labor employed is
A) 2,000 hours per day. B) 4,000 hours per day. C) 5,000 hours per day. D) 7,000 hours per day.
If technological change is "neutral," then
A) output per worker declines, output per unit of capital increases. B) "effective labor input" increases, output per unit of capital declines. C) output per worker increases, output per unit of capital is constant. D) Both output per worker and output per unit of capital change.
In order to earn an economic profit, a firm needs to charge a price in excess of
A) accounting average cost. B) normal average costs. C) economic average cost. D) long-run fixed costs.
The United States is a net borrower. If its budget deficits rise faster than GDP, the national debt will:
A. increase both in terms of dollars and as a percentage of GDP. B. decrease both in terms of dollars and as a percentage of GDP. C. increase in terms of dollars but decrease as a percentage of GDP. D. decrease in terms of dollars but increase as a percentage of GDP.