The ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percentage change in price is called:
a. price elasticity.
b. cost elasticity.
c. demand elasticity.
d. supply elasticity.
a. price elasticity.
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Which of the following statements correctly differentiates between unemployed workers and discouraged workers?
A) Unemployed workers refer to the skilled workers who have been laid off, while discouraged workers refer to the unskilled workers who have lost their jobs. B) Unemployed workers are counted in the labor force, but discouraged workers are excluded from the labor force. C) Unemployed workers do not have a paid job, while discouraged workers have a paid job. D) The unemployment benefits received by unemployed workers are not capped, while the unemployment benefits received by discouraged workers are capped at a maximum.
Netflix is the largest online DVD rental service offering flat rate online streaming to customers in the United States. Currently, there are approximately 8 million subscribers
Suppose Netflix decreases its flat rate rental by 10 percent and an additional 1 million people subscribe. This information means that Netflix's demand is A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
According to Douglass North, the Industrial Revolution occurred in England because
A) the British Parliament instituted a command economy structure and implemented a planned economy. B) the British courts became tied to the king and began to refuse to enforce property rights. C) the British Parliament took control of the government and could credibly commit to upholding property rights. D) the British monarchy took control of the government and pledged not to raise taxes arbitrarily.
Decreases in the price level will
A) raise consumption because real wealth increases. B) lower consumption because goods and services are less affordable. C) raise consumption because goods and services are more affordable. D) lower consumption because real wealth decreases.