If the elasticity of demand for a good at a certain price is greater than one, we describe demand as _____.
(A) Unitary elastic
(B) Elastic
(C) Inelastic
(D) Variable
Ans: (B) Elastic
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Suppose the demand curve for committing robbery can be represented by a downward sloping demand curve. In other words, as the price of committing a robbery falls, more robberies will be committed
Now, suppose laws are passed allowing people to carry guns unconcealed in public. Which of the following best explains the likely outcome? A) Demand for robberies will fall. B) Supply of robberies will increase. C) The elasticity of robberies will be perfectly inelastic. D) The quantity demanded of robberies will decrease because the price of robberies has risen.
When economists assume that people are rational, they assume that
a. consumers maximize profits. b. firms maximize revenues. c. consumers maximize utility. d. firms maximize output.
To avoid double counting when GDP is estimated, economists:
(a) Calculate using GDP deflator; (b) Calculate using retail prices; (c) Calculate the value added of production; (d) Calculate using the prices of intermediate goods only.
Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below.Hours in East OrchardNumber of Apples Per HourHours in West OrchardNumber of Apples Per Hour140110232210325310420410 How should Frank divide his time between the east and the west orchard?
A. He should spend 1 hour in the east orchard and 3 hours in the west orchard. B. He should spend all 4 hours in the east orchard. C. He should spend 3 hours in the east orchard and 1 hour in the west orchard. D. He should spend 2 hours in east orchard and 2 hours in the west orchard.