1. An increase in the minimum wage to $15 an hour would shortage in the market for unskilled workers.

A - True

B - False

1. A research study found that the cross-price elasticity of demand between beer and wine equaled -0.83, which means that beer and wine are substitute goods.

A - True

B - False

1. Which of the following explains why a monopolistically competitive firm that earns a short-run economic profit would earn only a normal profit in the long run?

A - New firms will be able to enter the firm's market in the long run.

B - The firm's demand curve is downward sloping.

C - The firm can differentiate the product is sells in the short run but not in the long run.

D - The firm must lower the price of the product it sells in order to increase quantity demanded in the long run.

E - The firm's demand curve will become perfectly elastic in the long run.

1. A research study found that the cross-price elasticity of demand between beer and spirits was equal to -0.50. This value for the cross-price elasticity implies that:

A - beer and spirits are both normal goods.

B - if the price of beer increases the revenue from sales of beer will increase, other things being equal.

C - beer and wine are substitute goods.

D - beer and wine are complementary goods.

E - beer and wine are inferior goods.

1. The Securities and Exchange Commission (SEC) requires that a corporation must pay a dividend on each share of its outstanding common stock.

A - True

B - False

1. If the price elasticity of demand for Tanqueray gin is equal to -1.5, which of the following would be true?

A - Tanqueray gin is a normal good.

B - Tanqueray gin is a superior good.

C - Other things being equal, an increase in price would result in an increase in revenue from sales of Tanqueray gin.

D - Other things being equal, an increase in price would result in a decrease in profit earned from sales of Tanqueray gin.

E - Other things being equal, an increase in price would result in a decrease in revenue from sales of Tanqueray gin.