Answer the following statements true (T) or false (F)
1. The labor supply curve(s) will shift left if there is a decrease in wages.
2. An increase in the price of a product signals consumers that there is an overage and the product should perhaps be economized on.
3. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
4. It is a common mistake to confuse the slope of the supply curve with its elasticity.
5. Zero elasticity in either a supply or demand curve occurs when a price change of one percent results in a quantity change of one percent.
1. True
This statement is true. The labor supply curve(s) will shift left if there is a decrease in wages.
2. False
This statement is false. An increase in the price of a product signals consumers that there is a shortage and the product should perhaps be economized on.
3. True
This statement is true. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
4. True
This statement is true. It is a common mistake to confuse the slope of the supply curve with its elasticity.
5. False
This statement is false. Constant unitary elasticity in either a supply or demand curve occurs when a price change of one percent results in a quantity change of one percent.
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Refer to Table 2-9. What is Japan's opportunity cost of producing one pound of rice?
A) 0.04 units of a wristwatch B) 4 wristwatches C) 25 wristwatches D) 40 wristwatches
Which of the following components of aggregate expenditure is most subject to crowding out?
a. Consumption expenditures b. Investment spending c. Imports d. Government purchases of goods and services e. National saving
Macroeconomics focuses on the behavior of economic agents such as the consumer, a business firm, or a specific market
a. True b. False
An economy with a trade deficit must also have:
A. positive net capital outflows. B. a budget surplus. C. positive net capital inflows. D. a trade deficit.