How much of each dollar spent by a consumer ultimately becomes income to someone else?
A) less than one dollar
B) It depends on how much the cost there is in the distribution channel that delivers the good from the manufacturer to the consumer.
C) It depends on how much labor was needed to produce the good that the consumer buys.
D) one dollar
D
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The duration of unemployment tends to rise when
A) business activity goes into a downturn. B) business activity starts back up after a long period of decline. C) people leave their jobs rather than lose their jobs. D) the number of entrants exceeds the number of reentrants.
Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Consumer surplus is:
A. $5.
B. $10.
C. $45.
D. $9.
When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.
For a good that is a necessity, demand
a. tends to be inelastic. b. tends to be elastic. c. has unit elasticity. d. cannot be represented by a demand curve in the usual way.