What happens when the supply of a nonperishable good is greater than the consumer wants to buy?
What will be an ideal response?
Answer: either the good remains unsold or the price drops
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The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic. B) to ensure that the elasticity has a negative value. C) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve. D) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
Which of the following cost functions will exhibit both decreasing and increasing marginal costs?
A) a cubic cost function B) a quadratic cost function C) a linear cost function D) All of the above
If I own a share of stock in IBM, I own
a. only the right to vote in elections of corporate directors b. a claim to a share of IBM's assets and earnings as well as the right to demand annual dividend payments c. the right to demand annual dividend payments as well as the right to vote in elections of corporate directors d. only the right to demand annual dividend payments e. a claim to a share of IBM's assets and earnings as well as the right to vote in elections of corporate directors
If an increase in inflation is expected, which of the following events is the least likely to occur?
a. There will be an upward movement along the long-run Phillips curve. b. Nominal GDP will increase. c. Nominal wage rates will increase at the same rate as expected inflation. d. A worker's reservation wage will rise at the same rate as expected inflation. e. Unemployment rate will increase.