If the supply of oranges is unit elastic, the price elasticity of supply of oranges is
A. 1.0.
B. 0.0.
C. -1.0.
D. -100.0.
Answer: A
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In the above table, what is the marginal factor cost of the 5th worker?
A) $22 B) $18 C) $90 D) $26
As the housing bubble collapsed, and the value of homes decreased, consumers' loss of wealth led to:
A. decreased consumption, which further depressed prices, which reduced output further, leading to more job loss. B. increased consumption, which increased prices, which increased the costs of production, leading to more job loss. C. decreased consumption, which increased prices, which increased the costs of production, leading to more job loss. D. decreased consumption, which further depressed prices, which decreased the amount people had to spend, and increased savings.
The total of producer and consumer surplus is maximized when there is underproduction.
Answer the following statement true (T) or false (F)
In recent years, technological improvements and the Internet have substantially reduced transaction costs and expanded the availability of low-cost access to information, communications, and entertainment. Most economists believe that these changes Select one:
a. cause GDP to overstate the growth rate of real output and the improvement in the well-being of people. b. cause GDP to understate the growth rate of real output and the improvement in the well-being of people. c. cause the consumer price index to increase more rapidly than the general level of prices. d. reduce the gains from trade and thereby cause GDP to decline.