Which of the following is false?
a. The price elasticity of supply measures the sensitivity of the quantity supplied to the changes in the price of the good.
b. The price elasticity of supply is defined at the percentage change in the quantity supplied divided by the percentage change in price.
c. Goods with a supply elasticity that is greater than 1 are called relatively elastic in supply
d. When supply is inelastic, a 1 percent change in the price of a good will induce a more than 1 percent change in the quantity supplied.
d
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Potential problems with incentive based compensation are
a. not evaluating the relevant performance measures b. rewarding outcomes that are not include in the performance evaluation c. not funding rewards for meeting performance measures d. all of the above
The main effect of a decrease in the stock of capital is a(n):
a. rightward shift of the short-run aggregate supply curve. b. rightward shift of the aggregate demand curve c. leftward shift of the long-run aggregate supply curve. d. leftward shift of the aggregate demand curve. e. increase in the price and output levels.
The existence of positive externalities in the consumption of a good implies that: a. the social supply curve of the good lies to the right of the private supply curve
b. the government will need to provide subsidies to ensure a socially efficient level of consumption. c. the socially efficient quantity of the good will be less than the market equilibrium quantity. d. the good generates an external cost. e. the market equilibrium price of the good will be greater than the social equilibrium price.
Which of the following is an example of frictional unemployment?
A. A worker stays at home to take care of children. B. A worker can't find a job because she is skilled at running an obsolete machine. C. A student goes to school instead of working. D. A worker leaves one job and is temporarily unemployed before starting a new one.