Producers' total revenue will decrease if
A) income increases and the good is a normal good.
B) the price rises and demand is elastic.
C) the price rises and demand is inelastic.
D) income falls and the good is an inferior good.
B
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Economic theory
a. expresses normative values b. invents imaginative and interesting stories c. predicts the behavior of a specific economic decision maker after an economic change d. predicts the average behavior of a group of similar economic decision makers after an economic change e. uses only perfect and complete information
Which of the following government programs provides recipients with unrestricted cash payments?
a. Temporary Assistance to Needy Families (TANF). b. Medicaid. c. The food stamp program (SNAP). d. Housing assistance programs.
Funsters, Inc, the largest toy company in the country, sells its most popular doll for $15 . It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should
a. "fight fire with fire" by decreasing supply of its doll for six weeks and then increasing the supply. b. increase the supply of its doll now before the other doll hits the market. c. increase the price of its doll now. d. discontinue its doll.
Which of the following would reduce GDP by the greatest amount?
A. A $20 billion increase in taxes. B. $20 billion increases in both government spending and taxes. C. $20 billion decreases in both government spending and taxes. D. A $20 billion decrease in government spending.