A firm that changes its price and sees no change in the total revenues it receives is facing demand that is
A. price inelastic.
B. revenue inelastic.
C. unit elastic.
D. price elastic.
C. unit elastic.
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Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index falls, and real GDP rises. b. Price index falls, and the change in real GDP is uncertain. c. Price index falls, and real GDP falls. d. The change in price index is uncertain, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.
Microeconomics is the study of
A) how households and firms make choices. B) the economy as a whole. C) the global economy. D) topics such as unemployment, inflation, and economic growth.
One thing oligopolists must do in order to determine their optimal strategy is
A. ignore the reaction of their rivals to their strategy. B. anticipate the reaction of their rivals to their strategy. C. ignore the reaction of their customers to their strategy. D. anticipate the reaction of government to their strategy.