Given a linear demand curve, at which combination of price and marginal revenue (P, MR) is the price elasticity of demand greater than 1?
A. P = 15, MR = 8
B. P = 12, MR = 0
C. P = 8, MR = -2
D. P = 4, MR = -4
A. P = 15, MR = 8
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If the growth rate of the quantity of money is 4 percent per year, potential GDP and real GDP grow at 3 percent per year, and velocity does not change, in the long run what is the inflation rate?
What will be an ideal response?
Which of the following statements is true?
A) The total cost of production in a perfectly competitive market can be minimized only when the marginal costs across firms in the market are different. B) When a competitive market is allowed to operate efficiently, firms end up producing goods using the least amount of scarce resources. C) Under a perfectly competitive framework, a ruling authority is essentially required to dictate goals for the betterment of society. D) A firm interested in maximizing profits in a perfectly competitive market will produce output at a level where marginal revenue is equal to the price and greater than the marginal cost.
When the price of a resource is set below equilibrium,
a. excess demand for the resource will occur. b. excess supply of the resource will result. c. the supply of the resource will be inelastic. d. the demand for the resource will be inelastic.
Which of the following is not an example of a "lag" that diminishes the potential impact of fiscal policy?
A) the data lag B) the recessionary lag C) the legislative lag D) the transmission lag E) None of the above; all are examples of such lags.