Ray just got a raise, and decided to splurge on a fancy dinner to celebrate. The change to Ray's demand for fancy dinners could be measured by the:
A. price elasticity of demand.
B. income elasticity of demand.
C. price elasticity of supply.
D. cross-price elasticity.
Answer: B
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Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbor John is not happy about the pigeons, since they leave a mess on his property. This is an example of a nice gesture causing a
a. negative externality b. public good c. positive externaility d. third-party benefit e. free-rider outcome
As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has
A. fallen. B. stayed roughly constant. C. risen. D. generally risen, but has fallen during periods of recession.
Assume that political business cycles do not exist. Given this assumption, we would expect, all else fixed, the output growth to be highest in which period?
A) just prior to an election B) just after an election C) in the first year of an administration D) in the second year of an administration E) none of the above
________: the farm sector often produces more than it can sell at a desired price, leading to rising stocks of surplus commodities such as corn and cheese
Fill in the blank(s) with correct word