A demand for a product is more elastic
a. When it has few substitutes
b. In the long-run
c. When the expenditure on the product represent a small portion of the budget
d. When the product is broadly defined
b
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The principle that states that what matters to people is the real value or purchasing power of money is the
A) marginal principle. B) spillover principle. C) real-nominal principle. D) principle of diminishing returns.
Average variable cost is
a. total cost minus fixed cost b. total variable cost divided by the quantity of output c. total cost plus marginal cost d. total cost per unit of output e. output divided by the quantity of inputs used
One of the benefits associated with employee buy-in is that
A. greater use can be made of specific dispersed knowledge. B. upper-level management can enforce their decisions unilaterally. C. employees do not have to take accountability for a decision. D. there are stronger incentives on the part of the employees to implement decisions recommended by themselves.
Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
A. is considered a good predictor of future consumer prices. B. accounts for inflation before it reaches consumers, adjusting the CPI downward. C. is a lag variable for inflation. D. accounts for inflation before it reaches consumers, adjusting the CPI upward.