Refer to the figure above. What is the absolute value of the arc elasticity of demand when the price decreases from $5 to $2?
A) 0.64
B) 1.25
C) 1.75
D) 2
A
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If the isoquants are straight lines or L-shaped, then a cost-minimizing firm will
A) not be able to minimize costs. B) find the lowest isocost line touching the relevant isoquant. C) find the highest isocost line touching the relevant isoquant. D) choose not to produce any output.
Examples of incentive pay include
a. allowing employees a certain number of personal days b. providing onsite parking for employees c. bonuses for meeting deadlines d. offering a certain number of sick days
The basic ingredients in any economic decision are
a. scarcity and choice. b. surpluses and shortages. c. market prices and the use of efficient production methods. d. needs and wants.
An effective price floor on wheat will:
A. force otherwise profitable farmers out of business. B. result in a shortage of wheat. C. result in a surplus of wheat. D. clear the market for wheat.