If the price of oil is $60 per barrel, the quantity of oil supplied is 70 million barrels per day. If the price is $40 per barrel, the quantity of oil supplied is 69 million barrels per day. This implies that the
A) supply of oil is elastic.
B) supply of oil is inelastic.
C) demand for oil is inelastic.
D) demand for oil is elastic.
B
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The government debt is defined as
A) the excess of total revenues over total expenditures. B) the sum of all past deficits and surpluses. C) the excess of total expenditures over total revenues. D) government spending on goods and services plus transfer payments.
The aggregate expenditure (AE) curve
A) includes expenditures by domestic residents only. B) does not include expenditures on either imports or exports. C) includes expenditures on foreign as well as domestic goods. D) includes all expenditures on domestic goods. E) adds expenditures on imports because they are consumed in the nation and subtracts expenditures on exports because they are consumed abroad.
The figure above shows the marginal revenue and costs of a perfectly competitive firm. The firm's profit is maximized when the firm produces
A) 90 units of output. B) 130 units of output. C) 170 units of output. D) 210 units of output.
In a perfectly competitive market, total revenue:
A. is equal to price multiplied by quantity sold. B. varies due to changes in price, since quantity is constant. C. should vary across firms. D. measures how much revenue the firm takes in from all sales less any costs they incur.