Which product will have the most elastic demand curve?
A. Fresh fruit
B. Gasoline
C. Electricity
D. Medical services
A. Fresh fruit
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The wage rate. is the price of a unit of labor. What happens to the supply of labor if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
When technology increases the supply of a good and lower prices increase the quantity demanded,
A) the economy is reallocating resources to achieve an efficient allocation. B) consumer surplus falls. C) the invisible hand is unnecessary. D) the marginal benefit of the good increases with the quantity produced. E) the economy is no longer efficient because the quantity changes.
A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market. B) decrease the supply of dollars in the foreign exchange market. C) decrease the demand for dollars in the foreign exchange market. D) increase the demand for dollars in the foreign exchange market.
In order to make reliable forecasts with time series data, all of the following conditions are needed with the exception of
A) coefficients having been estimated precisely. B) the regression having high explanatory power. C) the regression being stable. D) the presence of omitted variable bias.