According to the total revenue rule, if the coefficient of price elasticity of demand is less than 1 and if price goes
a. up, total revenue stays the same.
b. down, total revenue goes up.
c. down, total revenue goes down.
d. up, total revenue goes down.
c. down, total revenue goes down.
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An efficient way to get a tire manufacturer to produce the socially optimal output level is
A) to impose a tax to make the tire manufacturer bear the external cost it creates. B) for government to set a quota on the quantity of tires that it can produce. C) to grant a subsidy to enable the manufacturer to internalize the external costs of production. D) to assign property rights to the tire manufacturer.
Tobin's model of the speculative demand for money improves on Keynes's analysis by showing that
A) the speculative demand for money is interest insensitive. B) the transactions demand for money is interest insensitive. C) people will hold a diversified portfolio. D) people will hold money or bonds but not both.
What links the decisions of consumers and firms in a market?
A) the government B) prices C) coordination officials D) microeconomics
Which of the following is true?
(a) GDE = FD - M; (b) GDPfc +T-S=GDPmp; (c) GNP - NFIFA = NNP; (d) GNP=FD-X.