ECO 365 Final Exam (August 2015) - Assignment.pdf

23). When Ross Perot ran for president as a third party candidate in 1992, heargued that free trade with Mexico would result in massive job losses in theUnited States because Mexican wages were so low. Which of the following is thebest explanation of why few economists agreed with Perot?Although economics predicted that unemployment would rise, the increasedprofits of corporations would raise stock prices enough to compensate for the lostjobs.Economists did not believe any jobs would be lost in the United States.Although economists believed that in some areas the United States would losejobs, they expected the United States would gain jobs in other areas.Economics believed that the U.S. unemployment would rise.24). Mr. Woodward’s cabinet shop is experiencing rapid growth in sales. As saleshave increased, Mr. Woodward has found it necessary to hire more workers.However, he has observed that doubling the number of workers has less thandoubled his output. What is the likely explanation?The law of demandThe law of diminishing marginal productivityThe law of supplyThe law of diminishing marginal utilityWant to download the Complete Assignment..??Click ECO 365 Final Exam25). Price elasticity of demand is the:Change in the quantity of a good demanded divided by the change in the price ofthat good.Percentage change in price of that good divided by the percentage change in thequantity of that good demanded.Percentage change in quantity of a good demanded divided by the percentagechange in the price of that good.Change in the price of a good divided by the change in the quantity of that gooddemanded.