Within different price ranges along a demand curve, price elasticities of demand are
a. constant across all price ranges
b. different, and greater, equal to, or less than one depending on the price range
c. positive or negative, depending upon whether they are elastic or inelastic
d. always less than one because total revenue increases when price falls
e. always greater than one because total revenue increases when price falls
B
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In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. What can we conclude?
A. Real wages declined by more than real GDP. B. Nominal income declined by more than personal income. C. The price level fell by more than real GDP. D. The price level rose by more than nominal GDP.
Regarding U.S. antitrust activity, the rule of reason was expressed in the
a. Standard Oil case. b. Robinson-Patman Act. c. Clayton Act. d. ALCOA case.
The principle of marginal decision-making manifests itself in medical markets in many ways. Which of the following statements is not true?
a. It was unnecessary to mandate coverage of routine preventive screening with zero out-of-pocket cost because most people already received that benefit. b. Balancing incremental benefits with incremental costs is essential for optimal resource allocation. c. Insurance coverage allows patients to ignore many of the trade-offs that usually go along with consuming scarce resources. d. Generous insurance coverage with low out-of-pocket costs leads to patients undervaluing the cost the resources used to provide their care - leading to overconsumption.
Which of the following is an example of a durable good?
(A) A box of cereal (B) A pack of baseball cards (C) A used car (D) A paperback book