At a wage of $25 per hour, the firm employs 50,000 of hours of labor per week. If the wage would increase to $27 per hour, the firm would employ 45,000 hours of labor per week. What is the elasticity of labor demand?
A. ?1.25
B. ?0.25
C. ?1.50
D. ?2.50
E. ?0.50
Answer: A
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A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
Suppose Addison is a big fan of jazz music, and that he likes opera music very little. What would his family of indifference curves look like?
A. Negatively sloped, with higher levels of utility represented by indifference curves that are closer to the origin B. Positively sloped, with higher levels of utility represented by indifference curves that are closer to the origin C. Negatively sloped, with higher levels of utility represented by indifference curves that are farther from the origin D. Positively sloped, with higher levels of utility represented by indifference curves that are farther from the origin
U.S- based Dell sells computers to an Irish company that pays with previously obtained U.S. currency. This exchange
a. increases U.S. net capital outflow because the U.S. acquires foreign-owned assets. b. decreases U.S. net capital outflow because the U.S. acquires foreign-owned assets. c. increases U.S. net capital outflow because the U.S. sells capital goods. d. decreases U.S. net capital outflow because the U.S. sells capital goods.
History has shown that over the long run, labor-saving technology has actually not reduced employment.
Answer the following statement true (T) or false (F)