The price elasticity of supply at a point is:
A. the percentage change in price divided by the percentage change in quantity supplied.
B. the change in price divided by the change in quantity supplied.
C. the change in quantity supplied divided by the change in price.
D. the percentage change in quantity supplied divided by the percentage change in price.
Answer: D
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If a labor market that was previously competitive becomes controlled by a monopsony, the wage rate ________ and employment ________
A) rises; increases B) falls; decreases C) rises; decreases D) falls; increase
Answer the following statements true (T) or false (F)
1. Price elasticity of demand tends to be greater for substitute items than for complementary goods. 2. If income increases and the demand for a product increases, the product is a normal good. 3. The more substitutes for a good, the more elastic its demand tends to be. 4. The total quantity of a good offered for sale is unaffected by estimates by sellers of the probable costs of producing the good in the future. 5. The total quantity of a good offered for sale is unaffected by estimates by sellers of the probable costs of producing the good in the future.
The Federal Reserve System is a branch of the Treasury Department
a. True b. False Indicate whether the statement is true or false
Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?
a. a large and unexpected exchange rate appreciation b. a large and unexpected interest rate increase c. a large and unexpected exchange rate depreciation d. a large and unexpected increase in foreign investments