If the demand for KFC chicken is price inelastic, a fall in the price of KFC chicken will raise the total revenue
Indicate whether the statement is true or false
FALSE
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Which of the following best describes the reason for studying economics?
a. Studying economics helps individuals, businesses, and governments make the best decisions. b. Studying economics helps individuals, businesses and governments understand the financial problems facing the world today. c. Studying economics gives businesses and governments the answers to economic problems. d. Studying economics only helps governments understand the major problems facing the world today.
Following the MC = MR rule to profit maximization tells us how much profit can be made
Indicate whether the statement is true or false
The law of diminishing product states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then:
a) the MP and the AP of the variable factor will eventually decrease. b) TP will eventually begin to fall. c) the AP will eventually decrease, but only if TP is held constant. d) the MP will eventually decrease with constant AP. e) the AP will eventually decrease with constant MP.
If the anticipated inflation rate is 5 percent and the nominal interest rate is 9 percent, the real interest rate will be
A. 14 percent. B. 5 percent. C. Negative 14 percent. D. 4 percent.