Which of the following concerning the relationship between elasticity and total revenue is true?
a. Price elasticity and total revenue are not related.
b. When demand for a good is unit elastic, any price change within the unit elastic price range changes total revenue by one
c. When demand for a good is price inelastic, total revenue increases when price increases.
d. When demand for a good is price elastic, total revenue increases when price increases.
e. Total revenue is maximized when the price elasticity of demand is zero.
C
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Nicholas is saving money collected from his paper route in order to purchase a new bicycle. His saving represents using money as
A) a medium of exchange. B) a store of value. C) an unit of account. D) none of the above
The production function in Scenario 7.3 exhibits:
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) all of the above at various levels of output.
The Public Sector Net Cash Borrowing is:
a) A measure of the government's trade position b) A measure of the government's budget position c) A measure of the government's total debt d) A measure of the government's monetary stance
The "other" category of federal spending consists of many less expensive functions of government, including all of the following except
a. housing credit programs. b. farm support programs. c. funding for the National Institutes of Health. d. the federal court system.