Over the inelastic range of a demand curve, there is
A) a positive relationship between a given percentage change in price and a change in total revenues.
B) a negative relationship between a given percentage change in price and a change in total revenues.
C) an increase in total revenues regardless of an increase or decrease in price.
D) no relationship between changes in price and changes in total revenues.
A
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What policy approach would an economist propose to internalize the externalities created by resource use? What is the basis for, and objection to, this type of policy?
What will be an ideal response?
As a price searcher, a monopoly firm
A) must only determine the price it charges. B) must determine its optimal price-output combination. C) must determine its output level and then accept the market price for its product. D) must determine the prices it pays for its inputs and accept the market price for its output.
Economists believe that public debt
a. always promotes overconsumption b. promotes overconsumption if people view the government's liabilities as their own c. promotes overconsumption if people fail to view the government's liabilities as their own d. cannot promote overconsumption e. promotes underconsumption if people view the government's liabilities as their own
Using the quantity equation, the demand for money can be expressed as
A) M=(V x Y)÷P. B) M =(P x Y)÷V. C) M = (P x V) ÷ Y. D) M x V=(1/P)V x Y.