If a 10 percent wage increase in a particular labor market results in a 5 percent decline in employment in that market, labor demand is:
A. unit-elastic.
B. elastic.
C. inelastic.
D. perfectly elastic.
Answer: C
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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
Figure 8-1
Which graph in Figure 8-1 shows a typical firm’s total revenue and total cost curves?
A. (a) B. (b) C. (c) D. (d)
Which is not a significant source of state and local government revenues?
A. Payroll taxes B. Property taxes C. Sales taxes D. The federal government
Which of the following can create demand-pull inflation?
A. Excessive aggregate spending. B. Sharply rising oil prices. C. Higher labor costs. D. Recessions and depressions.