Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income
a. True
b. False
Indicate whether the statement is true or false
True
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In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas
The company will also add some $400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision? A) triple its Yoder work force B) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract C) $400,000 in new equipment purchases D) All of these decisions are short run decisions.
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that:
A. the labor demand curve must have independently shifted to the right. B. labor demand is highly elastic. C. the coefficient of labor demand elasticity is less than 1. D. labor demand is unit-elastic.