To an economist, maximizing profit is:
A. maximizing the value of the firm.
B. minimizing the future risks.
C. maximizing the current year's profits.
D. minimizing the permanent total costs.
Answer: A
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If you are testing the null hypothesis, you are testing
A) the hypothesis that the coefficient for an explanatory variable is zero and therefore has no impact on your results. B) whether or not price should be set to 0. C) the relationship between the t-statistic and the standard error. D) the hypothesis that setting a given price will yield no increase in profits.
Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between X and Y?
A) -2 B) -1 C) 0 D) +1
The pessimistic view of the shape of the Environmental Kuznets Curve is
a. linear from the origin b. an inverted-U shape that flattens out after some critical income level c. a perfectly symmetric inverted-U shape d. a flattened U-shape
What is one potential effect of very high GDP and very low unemployment?
A. A recession B. Stagnation C. Falling interest rates D. Inflation