Price elasticity of demand is a numerical measure of how much quantity demanded rises as price falls or quantity demanded falls as price rises
a. True
b. False
Indicate whether the statement is true or false
True
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How are the fundamental economic decisions determined in North Korea?
A) The United Nations decides because North Korea is a developing economy. B) These decisions are made by the country's elders who have had much experience in answering these questions. C) Individuals, firms, and the government interact in a market to make these economic decisions. D) The government decides because North Korea is a centrally planned economy.
If Country A’s opportunity cost of corn is lower than Country B’s opportunity cost of corn, then
a. Country A has a comparative advantage in the production of corn. b. Country A has an absolute advantage in the production of corn. c. Country A should import corn from Country B. d. Country B should produce just enough corn to satisfy its own residents’ demands.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
An unexpected decrease in wealth or nonlabor income leads to
A. a zero effect on labor supply. B. an uncertain effect on labor supply. C. an increase in labor supply. D. a decrease in labor supply.