Suppose when the price of shoe laces goes from $1 to $2 per pair, production increases from 95 million pairs to 105 million pairs per year. Using the mid-point method, the price elasticity of supply is:
A. 6.28
B. 66 percent
C. 10.5 percent
D. 0.15
D. 0.15
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Advocates of the public-choice view argue that voting behavior is influenced by the
a. rate of inflation prior to an election. b. level of economic activity. c. "favorite son" syndrome. d. campaign issues.
If bond prices are plotted on a graph with interest rates on the vertical axis,
A. the curve produced has a positive slope. B. the curve display no relationship to one another. C. the curve produced has a negative slope. D. the curve is a horizontal straight line at the current interest rate.
If an advance in computer technology reduces the need for businesses to hire accountants, students majoring in accounting should expect
a. a lower rate of return on their human capital investment. b. an increase in their employment prospects. c. a higher wage rate than they were expecting when they selected their major. d. an increase in the demand for accountants.
When an economy is operating at its full employment rate of output:
A. the rate of unemployment will be zero. B. output will exceed the economy's maximum sustainable rate. C. the actual rate of unemployment will equal the natural rate. D. the economy's potential rate of output will exceed actual GDP.