Which of the following will not result in a rightward shift of the market demand curve for labor?

1. an increase in crease in labor productivity
2. an increase in worker training and education levels
3. an increase in the wage rate
4. an increase in demand for the firm's product

Question

13of25

Imposing a price ceiling on interest rates will likely:

1. hurt all lenders
2. reduce the supply of capital
3. hurt some borrowers
4. Increase the demand for capital

Question

14of25

The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in _________ .

1. quantity supplied
2. the slope of the demand curve
3. price
4. the slope of the supply curve

Question

15of25

The price elasticity of demand for tickets to local baseball games is estimated to be equal to 1.2. What will happen if the management raises ticket prices?

1. Revenue will go up
2. .Revenue will go down.
3. Profits will fall.
4. nothing. Fans will always come.

Question

16of25

A demand curve that is highly inelastic indicates that

1. suppliers will have difficulty producing enough of it.
2. a change in price will result in little or no change in the quantity demanded
3. .a change in the price will result in a significant change in the quantity demanded.
4. The good has many substitutes.

Question

17of25

Price elasticity of supply is defined as the _______ change in quantity supplied divided by the _______________ change in price.

1. total; percentage
2. percentage; marginal
3. marginal; percentage
4. percentage; percentage

Question

18of25

An inferior good is __________________.

1. a good that nobody wants
2. cheap
3. a good for which the income elasticity of demand is positive
4. a good for which the income elasticity of demand is negative

Question

19of25

If the price elasticity of demand for cereal is .85, and suppliers raise their prices, they would expect that their:

1. total revenue will decrease.
2. total revenue will increase.
3. total revenue will remain constant
4. .Profits will increase.

Question

20of25

We can infer that burgers and fries are regarded as complements if their __________ are __________.

1. price elasticities; greater than one
2. cross-price elasticities; positive
3. price elasticities; less than one
4. cross-price elasticities; negative

Question

21of25

If the cross-price elasticity between two good is positive, we can infer that the goods are____

1. substitutes
2. complements
3. necessities
4. luxuries

Question

22of25

If foreign investors believe that the U.S. is becoming a less desirable place to put their money because of uncertainty about the U.S. public debt, the ____ curve for financial capital will shift________ .

supply; right

supply; left

demand left; right

demand; right

Question

23of25

If a coffee shop experiences an increase in the price of the coffee beans they purchase, they will be able to pass on that cost to their customers in terms of higher prices without hurting sales if:

The demand curve is elastic

The demand curve is inelastic

The demand curve is unit elastic

The demand curve is horizontal

Question

24of25

Price elasticity of demand is measured by the percentage change in_____________ divided by the percentage change in_____________.

1. the slope of the demand curve; price
2. price; the slope of the demand curve; price
3. quantity demanded; price
4. price; quantity demanded

Question

25of25

Which of the following government policies will result in a rightward shift of the market supply curve for labor?

1. an increase in unemployment benefits
2. an increase in childcare benefits
3. an increase in the educational requirements for teachers
4. a reduction in income tax rates