If a monopolist lowers its price and its demand is inelastic, then its
A) total revenue increases.
B) total revenue decreases.
C) total revenue does not change.
D) total revenue is negative.
B
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According to the quantity theory of money, a 15 percent increase in the quantity of money creates a 15 percent rise in
A) the price level. B) the velocity of circulation. C) real GDP. D) the unemployment rate.
Which of the following issues were not discussed in the recent Doha trade talks?
A) Eliminating export subsidies from agricultural products. B) Eliminating high tariffs and tariff escalation. C) Solving the conflicts of providing cheaper medicines to developing countries while promoting research and development. D) Establishing the basic framework for an all-encompassing world free trade agreement.
The benefits of specialization can be used to explain why:
A. machines are more productive than human workers. B. individuals and nations benefit from trade. C. big companies take advantage of smaller ones. D. workers prefer to work on a variety of tasks during the day.
Answer the following statements true (T) or false (F)
1) Within the circular flow model, the level of total resource income and total spending on output will be approximately equal. 2) In determining GDP by the expenditures method, it is appropriate to use net investment rather than gross investment as a measure of investment spending. 3) Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity. 4) Interest on the public debt is included as a part of government purchases in determining GDP by the expenditures method. 5) All expenditures on new construction are included as investment in calculating GDP.