If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers
A) would not change very much.
B) would rise by more than the amount of the tax.
C) would fall by an amount of the tax.
D) would fall by more than the amount of the tax.
A
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As the ________ interest rate increases, the quantity of loanable funds demanded ________
A) real; increases B) real; decreases C) nominal; increases D) nominal; decreases
If the government wants to borrow money to build new highways; then the
A) interest rate will be higher. B) quantity of funds available in the market will increase. C) private investment will decrease. D) All of the above.
Transfer payments are included in the calculation of personal income but excluded in the calculation of GDP
Indicate whether the statement is true or false
The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month. Therefore
A) ABC is experiencing diseconomies of scale. B) ABC is experiencing diminishing returns. C) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month. D) ABC will soon go out of business.