Which of the following statements is true?
A) Whenever a firm raises its price its total revenue will increase.
B) When a firm lowers its price its total revenue may either increase or decrease.
C) Whenever a firm increases its quantity sold its revenue will increase.
D) Total revenue will equal zero when the demand for a product is unit elastic.
Answer: B
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How are final goods and services valued when measuring nominal GDP?
A) at producer cost B) at base year prices C) at foreign exchange parity D) at current market prices E) at factor market prices
Implicit costs can be defined as
A) the non-monetary opportunity cost of using the firm's own resources. B) the deferred cost of production. C) total cost minus fixed costs. D) accounting profit minus explicit cost.
A firm replaces a machine by hiring 3 hourly production workers instead. a. Both its fixed and variable costs will fall
b. Both its fixed and variable costs will rise. c. Its fixed costs will rise and its variable costs will fall. d. Its fixed costs will fall and its variable costs will rise.
All of the following are stock price indices except
A. the Fortune 500. B. the NASDAQ composite. C. the S&P 500. D. the Dow Jones Industrial Average.