The elasticity of resource demand measures the:
A. responsiveness of workers to changes in wage rates.
B. responsiveness of producers to changes in resource prices.
C. ratio of marginal revenue product to resource price.
D. sensitivity of marginal revenue product to changes in product price.
Answer: B
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Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would
a. decrease. b. increase. c. be unaffected. d. There is insufficient information given to answer the question.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
One reason that labor productivity has increased is because of disembodied technical change.
Answer the following statement true (T) or false (F)
The 1968 prediction of Paul Ehrlich proved to be wrong because population growth:
A. Slowed dramatically as standards of living decreased B. Slowed dramatically as standards of living increased C. Rose dramatically as standards of living decreased D. Rose dramatically as standards of living increased