Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5.
B) 0.75.
C) 1.33.
D) 2.00.
B
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Which of the following will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged?
A) An increase in imports B) An increase in consumption expenditure C) A fall in the expenditure incurred by the government D) A fall in the expenditure on investment goods
Assume the U.S. population is 300 million. If 200 million people are of working age, 125 million are employed, and 15 million are unemployed, what is the size of the labor force?
A) 200 million B) 125 million C) 175 million D) 140 million E) 215 million
Supermarkets will frequently not carry the products of food processors unless the processors pay fees to the supermarkets because
A) supermarkets are cartels. B) supermarkets often dominate the geographic areas in which they sell. C) supermarkets stand between the food processors and the ultimate consumers. D) supermarket shelves are scarce goods. E) supermarkets typically have more bargaining power than food processors.
The impact of a strike is limited to the ability of the union to
A) prevent replacement workers from continuing their work. B) lower its wage demands of non-union members. C) control the pension fund. D) none of the above.