If demand is unitary elastic, a price decrease results in
a. an increase in total seller's total revenue
b. no change in total seller's total revenue
c. a decrease in total expenditure on the good
d. a decrease in quantity demanded of the good
e. an increase in supply of the good
B
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Comment on the following statement: "Capital investment decisions always involve risk."
What will be an ideal response?
Which of the following is not an example of a derived demand?
A) Several of the animated films released between 1999 and 2001 failed to earn a profit, which caused some companies to stop making these films, thereby decreasing the demand for animators. B) As advancements in medical technology increase the safety and success of laser eye surgery, the demand for opticians has decreased. C) Millicent Manning, the owner of a furniture store, is concerned that her sales have fallen for the past six months. She attributes this to the downturn in the real estate market. D) Seth Bullock, a personal-injury attorney, complains that he is earning far less now than a few years ago largely because personal injury cases have been undercut by state laws limiting class-action suits and payouts on damages.
A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.
Double counting in the national income accounts will be avoided if GDP is computed by totaling all:
A. sales. B. sales of final output. C. production costs. D. sales of final output and intermediate goods.