Another way to describe the growth rate of spending is:
A. the growth rate of real GDP.
B. the growth rate of nominal GDP.
C. the growth rate of the velocity of money.
D. the growth rate of the money supply.
Ans: B. the growth rate of nominal GDP.
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Which of the following statements about price elasticity of demand is false?
A) The value of the price elasticity of demand along a downward-sloping demand curve is always negative. B) If quantity demanded changes by a larger percentage than the percentage change in price, demand is elastic. C) The value of the price elasticity of demand is the reciprocal of the value of the demand curve's slope. D) A linear downward-sloping demand curve has a varying price elasticity coefficient.
A business incurs the following costs per unit: Labor - $125/unit; Materials $45/unit and rent - $25000/month. If the firm produces 1,000,00 . units a month, the total costs equal
a. $125,250,000 b. $170,250,000 c. $125,050,000 d. $170,050,000
If you carefully research the products, technologies, patents, and management of firms, the efficient markets theory of stock prices, predicts that
a. you will probably reap significant gains b. you will actually decrease your odds of doing better than the average investor c. you will probably do about as well as someone who did no research d. you will lose money unless you failed to consider historical stock price patterns e. both b and d
During a contraction,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.