If the price elasticity of demand is 0.6, then a 10 percent increase in the price of the good will lead to a ________ in the quantity demanded.
A. 0.6 percent decrease
B. 6 percent decrease
C. 6 percent increase
D. 0.6 percent increase
Answer: B
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Althea, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top 10 universities in her field. The type of unemployment she is experiencing is:
a. frictional. b. structural. c. seasonal. d. cyclical. e. underemployment.
A change in the price of a product will change the supply of that product.
Answer the following statement true (T) or false (F)
Government can play a major positive role in the early stage of economic development by:
A. Providing an adequate infrastructure B. Establishing price controls for products C. Promoting exports by subsidizing them D. Creating marketing boards for export products
Suppose your state government could undertake some measures that would improve the safety of highways within the state. If the goal is to use resources efficiently, how many of the measures should be undertaken?
a. all of them b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost c. all measures for which the marginal social benefits from safety improvements are greater than zero d. all measures for which the marginal social benefit from safety improvements is at least as great as what motorists have reported they would be willing to pay