The price elasticity of demand for eggs is .27 and the price elasticity of demand for soft drinks is .70. Therefore, the demand for eggs
A. is more elastic.
B. is less elastic.
C. cannot be compared to the demand for soft drinks because both are negative.
D. cannot be compared to the demand for soft drinks because eggs cannot be substituted for soft drinks.
B. is less elastic.
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Average product measures:
A. the marginal product averaged across all inputs. B. the quantity of output produced per unit of input. C. the additional output created from an additional unit of input. D. All of these are true.
In order for the existing workforce to be more productive, there needs to be
A. An increase in human capital. B. A decrease in economic growth. C. An increase in population. D. A redistribution of income within the nation.
When information asymmetry exists in a market, government:
A. sometimes steps in to try to correct it. B. only steps in to correct it if it can ensure complete information. C. never steps in to try to correct it. D. always steps in to try to correct it.
For a large country, replacing imports with domestic goods can result in
A. a more efficient allocation of resources based on comparative advantage. B. improvement in the country's terms of trade. C. a decrease in the price of its exports. D. an increase in the world price of its imports.