Assume the price elasticity of demand for a product is -4. In this case, the firm's optimal markup is (approximately):
A) 400 percent.
B) 100 percent.
C) 33 percent.
D) 25 percent.
C
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If Taiwanese workers can produce all goods at lower wages than American workers, then
A. Americans can still gain by trading with Taiwan. B. Americans can only lose if they import from Taiwan. C. Taiwan can only lose if it trades with America. D. there are no gains from trade that are possible in this case. E. Americans should be self-sufficient.
A budget surplus occurs when government receipts fall short of government spending
a. True b. False Indicate whether the statement is true or false
Negative real shocks and negative demand shocks:
A. commonly come together. B. are shown in the AD/AS model in the same way. C. usually do not happen at the same time. D. have the same basic causes.
Economic growth is achieved through: (check all that apply)
a. increased supplies of the factors of production. b. advances in technology. c. reduction in the quality of resources. d. decreased demand for the factors of production.