If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then the demand for the good is _____.
a. inelastic
b. relatively elastic
c. unit-elastic
d. perfectly inelastic
e. income elastic
QUESTION 2Which of the following is an example a lack of self-control that contradicts the conclusions of standard economic analysis?
a. Eating more food at an all-you-can-eat buffet
b. Playing video games all night even with an exam the following morning that will determine your semester grade
c. Decreasing the purchase of steak if the price increases 25
d. all of the above
QUESTION 3A monopsonist firm faces a negatively sloped marginal factor cost curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4What would be the consequence of a 10 percent decrease in the price of a good for which price elasticity of demand is 5?
a. A 50 percent decrease in the quantity demanded
b. A 5 percent increase in the quantity demanded
c. A 50 percent increase in the quantity demanded
d. A decrease in the quantity demanded by 0.2 units
e. An increase in the quantity demanded by 0.2 units
QUESTION 5Which of the following is an example of a concept from behavioral economics?
a. compartmentalizing
b. the endowment effect
c. behavior based on perceived fairness
d. all of the above
QUESTION 6The profit-maximizing number of workers for a monopsony to employ is derived at the point where the marginal revenue product of labor is equal to the marginal factor cost of labor.
a. True
b. False
Indicate whether the statement is true or false
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