Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.
A. high; low; increase
B. low; high; increase
C. low; high; decrease
D. high; low; decrease
Answer: D
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Which of the following statements is true about the price elasticity of demand?
A) As the number of substitutes for a product increases, the price elasticity of demand for that good decreases. B) If the budget share of a particular good in a consumer's bundle increases, the price elasticity of demand for that good is likely to decrease. C) The price elasticity of demand for a good is generally higher in the long run than in the short run. D) The demand for a good with a price elasticity of demand of zero is highly responsive to price changes.
Based on the production and revenue data in the above table, if the wage rate is $20 per worker, how many workers will be hired?
A) 5 B) 4 C) 3 D) 2
The absolute price of a good is its
A) relative price. B) money price. C) subjective price. D) projected price.
The number of people willing to buy tickets to the Super Bowl is invariable greater than the number of tickets (and seats) available. This is evidence that the price of the tickets is
What will be an ideal response?