When demand is elastic, a decrease in price will
A. decrease total revenue.
B. not change total revenue.
C. reduce quantity demanded.
D. increase total revenue.
Answer: D
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The figure above shows an education market in which the government is providing households with vouchers. What is the efficient quantity of students?
A) 2 million B) 4 million C) 6 million D) more than 6 million E) more than 4 million and less than 6 million
The equilibrating force in the credit market in the classical model is
A) the interest rate. B) the price level. C) full employment. D) fiscal policy.
The net-export effect of contractionary monetary policy is a(n)
A) depreciation of the value of the dollar and the increase of U.S. net exports. B) depreciation of the value of the dollar and the decrease of U.S. net exports. C) appreciation of the value of the dollar and the increase of U.S. net exports. D) appreciation of the value of the dollar and the decrease of U.S. net exports.
The natural rate of unemployment occurs if there is no:
a. unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.