If a product has several good substitutes, demand for the product is most likely to be:
A. very inelastic.
B. inelastic.
C. unit elastic.
D. elastic.
Answer: D
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Draw two graphs: one showing the relationship of average product, marginal product, and total product; the other showing the relationship of AFC, AVC, and ATC. Then relate the shape of the marginal product to that of the marginal cost.
What will be an ideal response?
Which of the following statements regarding OPEC is false?
A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.
Which of the following determinants of marginal productivity cannot be acquired by someone who wants to increase future productivity?
A) education B) training C) talent D) experience
The speculative demand for money is the stock of money that people hold to:
a. pay their predictable, everyday expenses. b. pay for any unexpected expenses that may occur. c. buy stocks, bonds, and other financial assets. d. buy the foreign currencies needed to purchase imports.