If the supply of a good decreases and it causes total revenue to increase, this shows that the good has an
A) inelastic demand.
B) elastic demand.
C) unit elastic demand.
D) inelastic supply.
E) elastic supply.
A
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Which of the following always lowers the equilibrium price?
A) an increase in both demand and supply B) a decrease in both demand and supply C) an increase in demand combined with a decrease in supply D) a decrease in demand combined with an increase in supply
According to James and Skinner, in 19th century American manufacturing, ____________ was scarce, but __________________ was even scarcer
a. unskilled labor; capital b. capital; skilled labor c. unskilled labor; fuel sources d. capital; raw materials
Currently an economy is producing (at a point on its production possibilities frontier) 100 units of good X and the opportunity cost of producing 1X is 3Y. If good X is produced at increasing opportunity costs, then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1Y (not 1X) could be
A) 1/4X. B) 1/3X. C) 1/2X. D) 1X. E) none of the above
The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, the ensuing financial crisis:
A. made it difficult for government to finance deficit spending. B. led to widespread inflation. C. shifted the PAE line upward. D. increased the level of uncertainty about the future.