If demand is elastic, a decrease in price leads to a decrease in total revenue
a. True
b. False
B
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All the following are examples of accounting costs, except
a. Interest payments on borrowed funds b. Costs paid to suppliers for product ingredients c. Cost of equity d. Depreciation expenses related to investments in buildings and equipment
Pick the economic variable that is countercyclical
a. Government transfer payments b. Prices c. Consumption d. Nominal interest rates e. All of the above are countercyclical variables
The equation of exchange states that
A) saving equals investment. B) gross domestic product equals the money supply multiplied by its velocity. C) increases in money supply cause decreases in velocity. D) increases in money supply cause increases in velocity.
An excise tariff is:
A. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market. B. a restriction limiting the quantity of imported goods that can legally enter a domestic market. C. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market. D. None of the statements are correct.