Suppose an oil company wants to make its total revenue as large as possible. It should charge a price at which the demand for oil is:
a. elastic.
b. unitary elastic.
c. inelastic.
d. perfectly inelastic.
b
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The Board of Governors of the Federal Reserve System is
A) elected by the public. B) elected by members of the American Banking Association. C) appointed by the Congress. D) appointed by the President with approval of the U.S. Senate.
Suppose that one-year Treasury bills yield 6 percent in the United States and 4 percent in Britain. Investors will be indifferent between them if they expect the dollar to
A) depreciate against the pound by approximately 2 percent. B) appreciate against the pound by approximately 2 percent. C) depreciate against the pound by approximately 33 percent. D) appreciate against the pound by approximately 33 percent.
An oligopoly showing no economic profit or loss has
a. an AR curve tangent to the lowest point of its ATC curve. b. an AR curve tangent to its ATC curve to the left of the lowest point. c. an MR curve above its AR curve. d. an AR curve that crosses its ATC curve.
Explain the difference between poverty and scarcity