The price elasticity of supply will always be a negative number.
Answer the following statement true (T) or false (F)
False
The law of supply states that, ceteris paribus, an increase in price will cause an increase in quantity supplied. There is a direct relationship between price and quantity supplied. The formula for the elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. This number will always be positive.
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When positive spending shocks occur, transfer payments automatically fall
a. True b. False
If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the
A) minimum wage will create a surplus of unskilled labor. B) minimum wage will create a shortage of unskilled labor. C) minimum wage will not impact the unskilled labor market. D) unskilled labor market will change, but we cannot be certain how.
A collective-action problem is a situation in which:
A. a group of people stand to gain from an action that is not rational for any of the members to undertake individually. B. people are reluctant to voluntarily pay for goods and services because they believe their individual contribution will not make a difference. C. people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay. D. a small group of individuals gains power that sways the decisions of society to their personal gain at the expense of the larger society.
Bank holding companies developed:
A. so foreign banks could open branches in the U.S. B. so that unit banks could combine into larger banks. C. to circumvent the regulation by the Office of the Comptroller of the Currency. D. to get around the limitations on bank branching.