If you double input, output more than doubles.
What will be an ideal response?
Ans: Increasing returns to scale
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If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded, then demand is
A) elastic and total revenue decreases. B) elastic and total revenue increases. C) inelastic and total revenue decreases. D) elastic, but we cannot tell what happens to total revenue without more information. E) Total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.
The equilibrium price of credit card services is
A) the real quantity of money. B) determined only by the demand for credit card services. C) the nominal interest rate. D) equal to the average cost of credit card services.
The equation of exchange is
A) an assumption that is not always true. B) true in the short run but not always in the long run. C) an accounting identity and therefore is always true. D) a theory developed at the Federal Reserve.
The threshold income level originally used to determine official poverty statistics was based on
A) an income three times the amount of money needed to purchase a nutritionally adequate diet. B) standards provided by the United Nations based on studies done in poor countries around the world. C) the highest income of the lowest one-fifth of families in the country. D) a per capita income of $1,000 in 1958 prices.