The difference between a firm's total revenue and its total cost is its ________ profit
A) explicit
B) normal
C) economic
D) accounting
E) excess
C
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If the price of a magazine increases from $5 to $7 and the quantity demanded of the magazines decreases from 10 million per month to 8 million per month, using the midpoint method, what is the price elasticity of demand? Show your work
Is the demand elastic, inelastic, or unit elastic?
Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue remains unchanged. B) Sales revenue rises. C) Sales revenue falls. D) It cannot be determined without information on prices.
Holding everything else constant, a country's exports will decrease if the:
A) country's currency appreciates. B) country's currency depreciates. C) country's currency is revalued. D) none of the above.
Government transfer payments
A. are subtracted from national income to obtain disposable income. B. can be considered as negative taxes. C. intervene between national product and disposable income in the same way as taxes. D. are counted the same as taxes in computing national income.