The price elasticity of demand for labor will be smaller, the
A) greater is the price elasticity of demand for the final product.
B) easier it is to employ substitute inputs in production.
C) smaller is the proportion of wage costs in the total cost of production.
D) longer is the time period under examination.
Answer: C
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The government defines the poverty line as
A. the lowest income quintile (20%). B. those receiving public assistance or eligible for public assistance. C. anyone who does not have to pay federal income tax. D. a minimum dollar amount of income, depending on family size.
"Bill Gates has made billions of dollars producing and marketing computer software. Many workers and consumers must have observation suffered in order for Gates to amass such enormous wealth." The person who made this
a. has failed to understand the principle of opportunity cost. b. has failed to comprehend the fallacy of composition. c. has failed to understand that specialization and voluntary exchange result in mutual economic gain. d. has utilized the economic way of thinking by thinking the gains of producers are made primarily at the expense of consumers and workers.
If 100% of individuals in a group are required to agree before an action can take place then _____
a. external costs will be high b. we cannot determine the level of external costs without additional information c. external costs will be zero d. external costs will be low
An example of a good or service that would count in the U.S. GNP would be a bag of coffee made in:
A. Colombia by Dunkin' Donuts. B. Vermont by Green Mountain Coffee Roasters. C. Canada by Starbucks. D. All of these would count in U.S. GNP.