Answer the following questions true (T) or false (F)
1. The elasticity of supply is equal to the percent change in price for a given percent change in quantity.
2. The market supply curve under conditions of perfect competition is typically perfectly elastic.
3. An increase in supply will increase the quantity demanded.
1. FALSE
2. FALSE
3. TRUE
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According to the logic of the wage-price spiral, an increase in wages leads to ____________ in ___________, which in turn leads to _______ in _________.
Fill in the blank(s) with the appropriate word(s).
Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:
a. those that are most specialized in cheese production. b. those that are most specialized in wine production. c. those that are least specialized in cheese production. d. those that are neither specialized in cheese nor wine production. e. those that are highly specialized in both cheese and wine production.
If as the variable on the Y-axis falls the variable on the X-axis rises, the relationship between X and Y is said to be a negative relationship.
Answer the following statement true (T) or false (F)
In a steady-state economy with no population growth, capital per worker is 86, the saving rate is 25 percent, and the depreciation rate is 11 percent. The level of output per worker is ________
A) 195 B) 38 C) 35 D) 47