If 12 units of a good are sold when the price is $1 per unit, and 8 units are sold at a price of $1.50 per unit, then demand is
a. elastic.
b. inelastic.
c. of indeterminate elasticity.
d. unit elastic.
d. unit elastic.
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Which of the following pairs is the most likely to exhibit a direct relationship?
a. The price of gasoline and the amount of gasoline that people purchase. b. Cholesterol levels and the likelihood of developing heart disease. c. Outdoor temperature and heating oil sales. d. Annual income and weekly pawn shop visits.
Opportunity cost exists because of
A. self-interest. B. scarcity. C. poverty. D. greed.
If a firm has established monitoring devices that have a 50% chance of detecting shirking, and an employee gains $5,000 from shirking, the employer can deter shirking by having employees post a bond equal to
A) $2,500. B) $5,000. C) $10,000. D) $50,000.
Which of the following policies is most likely to encourage long-run economic growth in a country?
A. An embargo on high technology imports B. an increase in the per capita savings rate C. an increase in the government transfer payments D. a decrease in the number of immigrants to the country