Consider a demand curve that has a constant elasticity value of 0. What happens to quantity demanded and total revenue when price increases?
A) The quantity demanded and total revenue remain the same.
B) The quantity demanded does not change but total revenue increases.
C) The quantity demanded and total revenue fall to zero.
D) The quantity demanded does not change but total revenue decreases.
Answer: B
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If the asset market is to remain in equilibrium, then if the money supply increases, output is unchanged, the price level is unchanged, and the expected inflation rate is unchanged, then
A) the real interest rate must rise. B) the real interest rate must decline. C) the nominal interest rate must rise. D) the inflation rate must rise.
In a Duopoly Nash-Cournot equilibrium,
A) neither firm has an incentive to change its output level given the other firm's output decision. B) firms will choose the pair of quantities above the intersection of the two best response functions. C) firms will choose the pair of quantities below the intersection of the two best response functions. D) firms will choose its quantity regardless of the other firm's output decision.
In a closed economy, the formula for public saving is: Sprivate = T + G + TR
a. True b. False Indicate whether the statement is true or false
The laws governing patents and copyrights
a. promote monopolies. b. are intended to serve private interests, not the public's interest. c. have costs but not benefits. d. eliminate the need for firms to engage in research and development.