Suppose you were to hear an economist defend the minimum wage on the grounds that when she estimated the saving rate of minimum wage workers and found it to be much smaller than the savings rate of employers. You would know her to be relying on the ________ argument.
A. work effort
B. macroeconomic
C. consumer and producer surplus
D. elasticity
Answer: B
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The law of demand is illustrated by a demand curve that is:
a. horizontal. b. downward-sloping. c. vertical. d. upward-sloping.
A community has five voters who are interested in only one issue: the government's spending on local parks. If Andre would like the government to spend $12,000 on parks, Brandon prefers $7,000, Charlene prefers $4,000, Dennis prefers $2,000, and Ernie prefers $0, how much spending would a politician seeking to win the election select when running against one opponent?
a. $2,000 b. $4,000 c. $7,000 d. $12,000
Economists use the term ceteris paribus to indicate which of the following?
What will be an ideal response?
A constant-cost industry is one in which:
A. resource prices fall as output is increased. B. resource prices rise as output is increased. C. resource prices remain unchanged as output is increased. D. small and large levels of output entail the same total costs.