An economic survey observed that a 20 percent cut in the price of a certain line of women's clothing, almost doubled the quantity demanded of the clothing. This led economists to conclude that the demand for this line of clothing is _____
a. highly elastic
b. highly inelastic
c. unit-elastic
d. perfectly elastic
e. perfectly inelastic
a
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Which of the following is an employer mandate in the new the federal government's new national health care program?
A) Under the new program, the federal government will coordinate the establishment of health insurance exchanges. B) A tax rate of 3.8 percent will be assessed on nearly all earnings above $200,000 per year for individuals and above $250,000 per year for married couples. C) Firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) Nearly all U.S. residents must either purchase health insurance coverage or pay a fine of up to $750 per year for an individual (up to $2,250 per year for a family).
The world price of cotton is the highest price of cotton observed anywhere in the world
a. True b. False Indicate whether the statement is true or false
Less-developed countries are poor for all of the following reasons except one. Which one?
A. The labor force is too small. B. Labor productivity is low. C. Investment funds tend to flow abroad D. Investment in human capital is very low.
The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then implicit costs must be
A. $50. B. $100. C. $250. D. $350.