If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a
a. 0.33 percent increase in the quantity demanded.
b. 3 percent increase in the quantity demanded.
c. 30 percent increase in the quantity demanded.
d. 48 percent increase in the quantity demanded.
d
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The ________ refers to the amount a household would like to work within a given period at the current wage rate if it could find the work.
A. unconstrained supply of labor B. labor-force participation rate C. natural rate of unemployment D. constrained supply of labor
In Econland total output is $8 billion, population equals 500,000 people, and, of these, 400,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.
A. $20,000; $20,000 B. $16,000; $20,000 C. $20,000; $16,000 D. $16,000; $16,000
In order to efficiently allocate goods and services, we have to compare
A) total cost to total benefit. B) total cost to price. C) marginal benefit to price. D) marginal cost to marginal benefit. E) price to marginal cost.
If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel is
A) an inferior good. B) a necessity. C) a luxury. D) a substitute for another good.