What is the price elasticity of demand at any point on a perfectly elastic demand curve?
The price elasticity of demand is infinity.
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Economic growth can be depicted as
A) an outward shift on the production possibilities curve. B) a movement up on the production possibilities curve. C) a movement down on the production possibilities curve. D) an inward shift on the production possibilities curve.
Suppose there is a high inequality in household income between the highest and the lowest income groups in one country. In response, the government raises the income tax for the highest income group and provides subsidies to the lowest-income group
What would happen to the Lorenz curve as a result of the government programs? Explain.
Voluntary trade promotes economic progress because
A) it discourages trade based on the comparative advantage of suppliers. B) This is a trick question; voluntary exchange does not promote economic progress. C) it moves goods, services and resources from people who value them less to individuals who value them more. D) it discourages businesses from seeking lower per-unit costs through adoption of mass production methods.
Real wages in the United States are:
A. the highest in the world. B. relatively high, but not as high as in some other industrially advanced nations. C. much higher than output per worker. D. higher than nominal wages.