If price elasticity of supply is large and demand is price-inelastic, then the firm can earn positive profits by increasing the price
a. True
b. False
Indicate whether the statement is true or false
True
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Property taxes are the product of the tax rate (T) and the assessed value (V). The total property tax collected in your city (P) is: P = T•V. If the value of properties rise 4% and if Mayor and City Council reduces the property the tax rate by 2%, what happens to the total amount of property tax collected? [HINT: the percentage rate of change of a product is approximately the sum of the
percentage rates of change.} a. It rises 6 %. b. It rises 4 %. c. It rises 3 %. d. It rises 2 % e. If falls 2%.
In the short run, total output in an industry
A. is absolutely fixed. B. may be altered by varying the size of plant and equipment that now exist in the industry. C. can vary as the result of new firms entering or leaving the industry. D. can vary as the result of using a fixed amount of plant and equipment more or less intensively.
When the economy is operating at the equilibrium level of? GDP, we know that
A) total planned real consumption expenditures equal real GDP.
B) planned real investment spending equals real net exports of zero.
C) total planned real expenditures equal real GDP.
D) real net exports equal inventory changes.
Answer the next question(s) based on the information given in the following table.EmploymentTotal ProductProduct Price00$3112322233303436354036423If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ
A. 2 workers B. 3 workers C. 4 workers D. 5 workers