If the price elasticity is supply coefficient is greater than one, then supply is:
A. elastic.
B. inelastic.
C. perfectly elastic.
D. perfectly inelastic.
Answer: A
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For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be smaller than the substitution effect. B) the income effect would have to be larger than the substitution effect. C) the income effect would have to be equal to the substitution effect. D) the income effect and the substitution effect would have to be nonexistent.
Which of the following job market signals are less costly for high-quality workers to send than low-quality workers?
A) Spending long hours at the office B) Sending emails to coworkers and supervisors at night and on weekends C) Leaving voice-mail message for colleagues before or after regular business hours D) all of the above
Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. The main reason for this phenomenon is that:
a. arbitrage activities become less profitable. b. governments prefer purchasing power parity not to hold. c. the interest rate parity fails to hold. d. goods become more differentiated across countries. e. individuals develop hatred toward closed economies.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is BD. If the price of CDs decreases, her new budget constraint becomes
A. EF. B. AO. C. AD. D. CD.