If the short run elasticity of demand for a good was greater than 1, an increase in the price of the good would tend to:
a. increase total revenue in both the short run and the long run
b. increase total revenue in the short run but not the long run.
c. decrease total revenue in the short run and the long run, but by more in the short run.
d. decrease total revenue in the short run and the long run, but by more in the long run.
d
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When one country has higher nominal interest rates than another country, the high-interest-rate currency is expected to ________ relative to the low-interest-rate currency
A) depreciate B) appreciate C) stay constant D) None of the above
Suppose the economy's production function is Y = A(300N - N2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G.(a)If G is 26,000, what are the real wage, employment, and output?(b)If G rises to 26,400, what are the real wage, employment, and output?(c)If G falls to 25,600, what are the real wage, employment, and output?(d)In cases (b) and (c), what is the government purchases multiplier; that is, what is the change in output divided by the change in government purchases?
What will be an ideal response?
Buyers’ expenditures and sellers’ revenues are always identical.
Answer the following statement true (T) or false (F)
In cost-effectiveness analysis, constant cost studies:
a. are rarely used b. attempt to specify the output which may be achieved from a number of alternative programs, assuming all are funded at the same level c. are useless because they fail to adequately evaluate program benefits d. try to find the least expensive way of achieving a certain objective e. none of the above