Assume that as a firm decreases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand?
A. 0.4
B. 1
C. 1.4
D. 4
Answer: A
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The four components of aggregate expenditures are:
A. consumption, investment, government spending, and net exports. B. consumption, interest payments, government spending, and net exports. C. consumption, imports, government spending, and net exports. D. consumer durables, investment, government spending, and net exports.
In the short run, movements in exchange rates are caused largely by economic fluctuations
a. True b. False
If the average cost of a product is $10 per unit and the price is $5, the firm is losing money
a. True b. False Indicate whether the statement is true or false
For the purpose of GDP accounting, consumption expenditures include:
A. only nondurable goods. B. only durable goods. C. both nondurable goods and services. D. durable goods, nondurable goods, and services.