Suppose milk and chocolate syrup are complements (mixed together they make chocolate milk). If the price of milk increased by exactly 25%, the economic way of thinking suggests
A) the demand for milk would decrease.
B) the demand for chocolate syrup would decrease.
C) the demand for milk would decrease by exactly 25%.
D) the demand for chocolate syrup would decrease by exactly 25%.
B
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A newspaper headline reads "A New Wave of Workers Enters the Job Market!" This wave of young, new entrants to the labor market is likely to lead to
A) no effect on the unemployment rate. B) an increase in the natural unemployment rate. C) a decrease in the natural unemployment rate but an increase in the actual unemployment rate. D) a decrease in the unemployment rate. E) a decrease in the country's potential GDP.
An individual is structurally unemployed if
A) there is a recession and the individual is laid off. B) the individual wants to work just during certain months of the year. C) the individual quits a job in order to search for a better one. D) the individual lacks marketable job skills because technology has changed.
If variable cost at each output level doubles,
a. ATC doubles b. AFC doubles c. MC remains unchanged d. MC doubles e. MC less than doubles
When the slope of a demand curve is constant, price elasticity of demand can vary.
Answer the following statement true (T) or false (F)