If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic
a. True
b. False
Indicate whether the statement is true or false
True
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The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242354464572If the product the firm produces sells for a constant $2 per unit, the marginal revenue product of the third unit of the resource is
A. $12. B. $18. C. $6. D. $24.
In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year
A) increases; 8 million B) decreases; 16 million C) increases; 4 million D) decreases; 8 million
The idea that a tax cut will create an incentive for people to increase their quantity of labor supplied, which will shift aggregate supply to the right and that will lower the price level and increase real GDP, is held by the
a. rational expectations school b. school of supply-side economics c. neo-Keynesian school d. classical school e. Keynesian school
Available evidence indicates that stock prices, even if not exactly a random walk, are very close to a random walk
a. True b. False Indicate whether the statement is true or false