A price cut will increase the revenue a firm receives if the demand for its product is
A. elastic.
B. inelastic.
C. unit elastic.
D. straight elastic.
Answer: A
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Most industrialized nations today use a gold standard to establish exchange rates
a. True b. False Indicate whether the statement is true or false
The government reduces the corporate profits tax. As a result, corporate profits increase. This will
A. increase the nonlabor income of households, causing consumption to increase and labor supply to increase. B. increase the nonlabor income of households, causing consumption to increase and labor supply to decrease. C. increase the nonlabor income of households, causing consumption to increase and labor supply to increase or decrease depending on the relative magnitude of the income and substitution effects. D. have no effect on households.
Because most people prefer smartphones to flip phones, firms can improve efficiency by
A. stopping production of flip phones and starting production of smartphones. B. stopping production of both flip phones and smartphones. C. increasing production of both flip phones and smartphones. D. starting production of flip phones and stopping production of smartphones.
In which of the four oligopolistic markets below is there considerable price competition?
A. music production industry B. high-definition DVD industry C. stent industry D. airline industry