Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand of 1.2 indicates an:
A. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
B. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
C. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
D. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
Answer: D
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Accumulating debt poses a problem for the U.S. federal government because
A) it is currently in danger of defaulting on the debt. B) the debt has to ultimately be paid off. C) building roads and bridges do not yield enough benefits to justify their cost. D) a large debt-to-GDP ratio causes crowding out.
Any event that decreases the value of the marginal product of labor will:
A. decrease labor demand. B. decrease labor supply. C. increase labor demand. D. increase labor supply.
Economists assume that most people a. act purposefully
b. make decision with some expected outcome in mind. c. make choices that are not random and chaotic. d. all of the above.
In the long run,
a. fiscal policy has no effect on the labor force participation rate. b. lower tax rates can lower the labor force participation rate. c. less generous transfer payments can raise the labor force participation rate. d. higher tax rates can raise the labor force participation rate. e. None of the above