If wheat farmers would receive a larger gross income from wheat sales when half the total wheat crop was destroyed, the demand for their wheat is
A) elastic.
B) inelastic.
C) larger at higher prices.
D) smaller at higher prices.
E) unit elastic.
B
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If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by $60 million will result in a total reduction in equilibrium income of:
a. $171.43 million. b. $123.47 million. c. $151.63 million. d. $73.47 million. e. $71.43 million.
Refer to the figure below. If the relevant curves are MC1 and MB2, a rational consumer will acquire ________ units of information, the amount for which marginal benefit for information is ________ its marginal cost.
A. 5; equal to B. 5; more than C. 4; more than D. 4; equal to
The cross price elasticity for Bud Light for a change in the price of Coor's Light is likely to be
A. negative but less negative than -1. B. positive. C. negative and more negative than -1. D. zero.
America Online's cost of delivering Internet access to each additional user has fallen over time because:
A. Of constant returns to scale B. Of minimum efficient scale C. Of economies of scale D. It is a natural monopoly