If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A) relatively elastic. B) perfectly inelastic. C) perfectly elastic. D) relatively inelastic.
A
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The free rider problem is caused by the:
A. "rivalness" in consumption of a good leading to the undersupply of it. B. incentive to oversupply the good since it is nonrival in consumption. C. nonexcludability of a good leading to the undersupply of it. D. "rivalness" in consumption of a good leading to the overconsumption of that good.
The production function is Q = K.6 L.4. The marginal rate of technical substitution is:
A. K.4 L-.6. B. 2/3 K L-1. C. 2/3 K-1 L. D. K-1 L-1.
Which of the following will not increase equilibrium output in the short run?
A) increases in R&D B) increases in consumer confidence C) increases in investment demand D) increases in government spending E) decreases in taxes
Economic growth can be pictured in a production possibilities curve diagram by
A. shifting the production possibilities curve in. B. moving from a point inside the production possibilities curve to a point on the curve. C. making the production possibilities curve straighter. D. shifting the production possibilities curve out.