When the price of cable modems decreased from $100 to $85, the number of cable modems produced fell from 1,000 per week to 850 per week. Using this information, we know the supply of cable modems is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
C
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The equilibrium increase in marginal costs for firms resulting from the imposition of a price floor will be larger the more inelastic the price elasticity of demand is.
Answer the following statement true (T) or false (F)
If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________
A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged
The United States has a more unequal income distribution than many other developed countries such as Japan and Germany
a. True b. False Indicate whether the statement is true or false
The amount a person earns over and above the amount she/he would be willing to work for is called
A. marginal resource cost. B. economic rent. C. marginal revenue product. D. profit on human capital.