Suppose the demand for good X is Q = 500P-1. This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.
A. constant; -1
B. variable; -0.5
C. constant; -0.2
D. variable; -2
Answer: A
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Why do economists test their hypotheses?
A) to see whether people are motivated by self-interest B) to see whether their models predict the choices people will make C) to determine whether government policies have effectively achieved their goals D) to learn what people are thinking when they make the choices they do
According to the graph shown, if the market price decreases (all else staying the same):
A. producer surplus would increase.
B. producer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
wars and natural disasters are referred as _______ shocks
Fill in the blank(s) with the appropriate word(s).
Answer the following questions true (T) or false (F)
1. The labor force participation rates of women have rapidly increased since 1948. 2. The household survey asks adults about their employment status and is used to compile the monthly unemployment rate. 3. The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.