Knowledge about the price elasticity of demand is especially useful to managers because it allows them to predict how a change in price would affect a firm's total profit
Indicate whether the statement is true or false
FALSE
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According to the economic way of thinking, scarcity implies
A) money. B) competition. C) capitalism. D) chaos. E) all of the above.
Assume that a perfectly competitive market is in long-run equilibrium. Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically. What is the immediate result of this event?
A) The typical firm's average total cost curve shifts downward. B) The typical firm's marginal cost curve shifts to the left. C) The market price falls and the typical firm suffers an economic loss. D) The market supply increases to offset the fall in demand.
One concern regarding the North American Free Trade Agreement (NAFTA) was that it would lead:
A. unskilled workers in the United States to lose their jobs. B. wages in Mexico to rise. C. the total value of goods and services produced by the United States to fall. D. highly skilled workers in the United States to lose their jobs.
A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels. B. decrease. C. increase. D. increase only if the level of unemployment is high.