Which of these options best reflects Jim’s opportunity cost of operating his own business?
A. The total amount of money he spends to obtain capital equipment
B. The value of Jim’s managerial skills that are used to run the business
C. The cost of hiring his laborers
D. All of the responses are correct.
Answer: B
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Suppose a decrease in the supply of wheat results in an increase in revenue. This indicates that
A) the demand curve for wheat must be vertical. B) the resulting increase in price is proportionately greater than decrease in quantity sold. C) the decrease in quantity sold is proportionately larger than the resulting change in price. D) the supply curve for wheat must be vertical.
Full-employment GDP is also known as
A) balanced-budget GDP. B) politico-economic GDP. C) potential GDP. D) realized GDP.
Given that the own-price elasticity of demand for a brand of shoes is -2, if the price rises by 8%, what will happen to the quantity of shoes demanded?
a. It will decrease by 16% b. It will increase by 16% c. It will decrease by 1.6% d. It will decrease by 1.6%
Suppose demand can be described with the equation Q = 900 ? 5P and supply with the equation Q = 100 + 5P
a. Determine the equilibrium price and quantity. b. Determine the surplus or shortage if the price were $100.