The production possibilities frontier is used to illustrate some basic economic ideas, including
a. scarcity.
b. opportunity cost.
c. economic growth.
d. All of the above are correct.
d
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A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consumer buys 6 bars per week. The income elasticity of demand for chocolate by this consumer is about:
A. 0 B. 0.5 C. 1 D. 2
In 2009, Congress passed tax laws to reduce income tax rates for some taxpayers. This action is called
A) a discretionary fiscal policy. B) a discretionary revenue policy. C) an automatic fiscal policy. D) an annual tax policy. E) induced tax policy.
The market demand curve shows how the quantity demanded of a product, during a specified time period, changes as the price of that product changes.
Answer the following statement true (T) or false (F)
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.