If Maria spends a fixed dollar amount per week on movie rentals regardless of changes in the price, Maria's demand for movie rental can be considered:
A. elastic.
B. unit elastic.
C. inelastic.
D. There is not sufficient information to determine the price elasticity.
Answer: B
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The government spending multiplier is equal to the tax multiplier
Indicate whether the statement is true or false
Does the proprietor of a grocery store who owns the building in which his business is located have lower costs than a grocery store proprietor who must pay rent for the building in which his store is located?
A) No, because no two businesses will be exactly the same. B) No, because the owner-proprietor loses the rent he could otherwise have been paid. C) Yes, because he can afford to set lower percentage markups. D) Yes, if the cost saving is not offset by higher expenses in other areas.
Which of the following statements about commission systems of compensation is false?
A) During sluggish periods, an employer's payroll expenses will decline along with sales. B) If workers are paid on the basis of the number of units produced, they may become less concerned about quality. C) They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort. D) The lack of income stability will induce the more productive workers to leave in search of more secure employment.
Implementation of the National Industrial Recovery Act (1933) positively impacted overall industrial production
Indicate whether the statement is true or false