Suppose there is a 10 percent increase in the price of good X and it causes a 10 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
a. 0
b. 1.
c. 10.
d. 100.
b
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Refer to Figure 13.1. Assume the voting method used to select a location for the recreation center is the Condorcet method. In the first round of voting, the residents of the 4 towns can choose between Glacier Cove and Mountain View
The winner of that vote will receive ________ votes. A) 150 B) 285 C) 405 D) 480
Suppose that there is a negative aggregate supply shock and the central bank commits to an inflation rate target
A) If the commitment is credible, the public's expected inflation will remain unchanged. B) Credible policy produces better outcomes on both inflation and output in the short run. C) Policies that are not credible produce worse economic contraction. D) all of the above. E) both A and C.
True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another
A) True, that way they can see each other's endowments and prices. B) False, begin in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box. C) True, the Edgeworth box only works when there folks see "eye-to-eye." D) False, although prices are only valid if they are communicated in person.
Which of the following is NOT considered to be a factor in the determination of a person's marginal productivity?
A) innate abilities such as high intelligence B) investment in human capital such as education C) on-the-job training D) the elasticity of supply of labor