Refer to Figure 24-3. Suppose the economy is at point A. If government spending increases in the economy, where will the eventual long-run equilibrium be?
A) A
B) B
C) C
D) D
C
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Price elasticity is a measure of how
A. much a market responds to a change in market conditions. B. much consumers or producers respond to a change in market price. C. quickly consumers or producers respond to a change in market price. D. quickly a market will respond to a change in market conditions.
Per capita GDP is
a. real GDP divided by the GDP deflator b. a measure of income per person c. a measure of resources available to each person d. an indicator of the overall production of a government
Tomas quit his job at the Tri-City bank where he earned $50,000 a year to start his own businesses, a bank marketing company. He estimates his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. He used $100,000 in savings
that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $250,000. The costs for rent, supplies, and an employee’s salary were $200,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions. Please provide the best answer for the statement.
If successive units of a good are consumed, the marginal utility gained typically:
A. decreases at the same rate for all people. B. increases at the same rate for all people. C. decreases at different rates for different people. D. increases at different rates for different people.