Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
A) The federal government will place a quota on the number of fuel-efficient cars for sale, thus "forcing" consumers to purchase the gas guzzling vehicles.
B) Producers will increase the production of fuel-efficient cars.
C) the termination of research on the cost-effectiveness of alternative fuels to power automobiles.
D) Producers will increase the production of gas guzzling vehicle
B) Producers will increase the production of fuel-efficient cars.
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The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint formula, what is the approximate change in the quantity of teenage labor supplied?
A) 7.3 percent B) 14.4 percent C) 25.5 percent D) There is insufficient information to answer the question.
When calculating the arc elasticity of demand, the percentage change in price (quantity) should be based on the average of the starting and ending prices (quantities)
Indicate whether the statement is true or false
Expenses for room and board
a. are opportunity costs of attending college, because they are subsidized by the government or by the college b. are opportunity costs of attending college since they involve cash expenditures c. are opportunity costs of attending college if you are on scholarship, but not otherwise d. are not usually part of the opportunity cost of attending college, because you would have to live somewhere and eat something even if you didn't attend college e. are not usually part of the opportunity cost of attending college, because they are already included in room and board charges, and we wish to avoid double counting
A traditional system operates based on the self interest of buyers and sellers
a. True b. False Indicate whether the statement is true or false