Suppose a drought increased the price of corn by 25 percent while it decreased the quantity by 50 percent. The price elasticity of demand equals
A) 2.00.
B) 0.50.
C) 20.0.
D) zero.
A
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To sell an extra unit of output, a perfectly competitive firm ________, and an imperfectly competitive firm ________.
A. need not alter its price; must lower its price B. must hope the market price falls; must lower its price C. must lower its price; must lower its price D. need not alter its price; need not alter its price
Differences in marginal revenue products are the most important factor in explaining wage differences. Other factors that explain wage differences include all but one of the following. Which factor does not help explain differences in wages?
A) discrimination B) labor unions C) compensating differentials D) cognitive differentials
In a market economy, persons undertaking an investment project must
a. obtain approval from political authorities before the project can be undertaken. b. either personally supply the required funds or convince other investors and financiers to do so. c. finance the project entirely with equity capital. d. arrange for bank financing before the project can be undertaken.
When collecting data to conduct research, if the sample used is not random, ________ occurs.
A. selection bias B. survivor bias C. difference-in-differences D. regression discontinuity