In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue.
Answer the following statement true (T) or false (F)
True
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Which of the following government actions would be considered expansionary fiscal policy?
A. Balancing the federal budget B. Reducing tariffs on imports C. Passing a personal tax credit for the purchase of a new automobile D. Asking the Federal Reserve to reduce interest rates
During the recent past, production and income have grown faster than population in highly developed economies because
A. of the availability of expensive and ineffective birth control devices. B. of rapid technological advancements. C. accumulation of both physical and human capital has slowed down. D. famine, war, and pestilence have greatly reduced the population.
Global budgets coupled with price ceilings can control total spending as long as:
a. patients are required to pay some of the expenses out-of-pocket. b. Global budgets can never work to control spending. c. providers cooperate by only providing "medically necessary" services. d. the price ceilings are negotiated in good faith. e. utilization of services does not increase significantly.
Some economists have proposed a new definition of money that would better track money demand. One such measure is the MZM or "money zero maturity." What kind of items will be included in this measure?
A) Assets that have no maturity such as cash, checking accounts, and shares of stocks. B) Assets that can be converted to cash with zero penalty and securities that are issued by the U.S. government since these are virtually risk free. C) Any deposits that do not have specified maturity terms, just as long as these deposits are fairly liquid and are used by consumers to pay for transactions. D) Liquid accounts held by the public, regardless of whether they are classified as M1 or M2 and the reserves of banks that earn no interest since these could be used to create money.