When demand is inelastic, an increase in price will result in an increase in total revenue.
Answer the following statement true (T) or false (F)
True
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The consumer basket used calculating the CPI depends on the goods and services selected in the base year. Suppose in 2000 we used 1952 as a base year. It would be less representative of the goods and services we buy in 2000 because the only good included in the CPI would be
a. personal computers b. CDs c. VCRs d. roller blades e. bread
If a certain market were a monopoly, then the monopolist would maximize its profit by producing 4,000 units of output. If, instead, that market were a duopoly, then which of the following outcomes would be most likely if the duopolists successfully collude?
a. Each duopolist produces 4,000 units of output. b. Each duopolist produces 1,500 units of output. c. One duopolist produces 2,400 units of output and the other produces 1,600 units of output. d. One duopolist produces 3,000 units of output and the other produces 1,500 units of output.
The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially:
A. "With as much machinery as possible." B. "Using the latest technology." C. "By exploiting labor." D. "In ways that minimize the cost per unit of output."
Imposing trade barriers does all of the following except
A) reduces economic efficiency. B) lowers incomes. C) lowers domestic prices. D) invites retaliation from foreign governments.