Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated that the demand for labor is nearly vertical, you would know her to be relying on the ________ argument.
A. work effort
B. elasticity
C. consumer and producer surplus
D. macroeconomic
Answer: B
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Refer to the scenario above. What is the expected value of the gamble?
A) 0 B) $50 C) $75 D) $100
When 1983 is the CPI base year, the CPI value is 82.4 for 1980 and 172.2 for 2000. Suppose we want to convert this CPI series to have a base year of 2000 (that is, CPI2000 = 100). What is the value of the revised CPI for 1980?
A) 172.2 B) 100 C) 47.9 D) 209.0
If two goods are substitutes, then
A. there is an inverse relationship between changes in the price of one good and changes in the demand for the other. B. changes in the quantity demanded of one good will not affect the demand for the other. C. an increase in the price of one causes the demand for the other to fall. D. if the price of one good falls, the demand for the other good falls also.
If demand decreases while supply increases, then the equilibrium price
A. may increase, decrease, or stay the same. B. always increases. C. never changes. D. always decreases.