When the price of laptops decreased in the 2010s, there was an increase in the demand for computing apps because laptops computing apps are
A. inferior goods.
B. complementary goods.
C. capital goods.
D. substitute goods.
Answer: B
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Assume that there is an increase in perceived bankruptcy risk. As a result of this we would expect to see
a. income and interest rates to rise. b. money demand and interest rates to fall. c. money demand and interest rates to rise. d. money supply to rise and interest rates to fall.Figure 7-1
The demand for a factor of production will be more inelastic
a. when the cost of the factor is small relative to the total cost of the product. b. the more elastic the demand for the final product. c. the easier it is to substitute other resources for the factor. d. the more elastic the supply of products produced with the resource.
About how much of the tax is paid by consumers in the form of higher prices?
A. 20 cents
B. 50 cents
C. $1
D. $4.85
Let the production function be q = ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.