Suppose the president of a textbook publisher argues that a 10 percent increase in the price of textbooks will raise total revenue for the publisher. It can be concluded that the company president thinks that demand for textbooks is:
A. unitary elastic.
B. inelastic.
C. elastic.
D. perfectly inelastic.
Answer: B
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The annual cost of producing the entire output of goods and services in the economy
A) includes durable goods but excludes nondurable goods. B) is total income. C) can be calculated entirely on the basis of financial transactions. D) includes financial transactions.
The two most important developments in global capital markets over the last few decades are
A) the growth in FDI within developed countries and private capital flows to emerging economies. B) the growth in FDI to emerging economies and private capital flows within developed countries. C) the growth of cross-border mergers and acquisitions and the stabilization of exchange rate regimes. D) the growth of cross-border mergers and acquisitions and private capital flows within developed countries.
Jimmy Earl, a farmer, sells $20 worth of peanuts to a factory that manufactures peanut butter, which sells it for $45 . Which of the following is true?
a. Total value added is $65 b. The value of final sales is $65. c. The value of final sales is $25. d. Total value added is $25. e. Total value added is $45.
Growth in potential GDP depends on
a. the labor force growth rate, capital stock growth rate, and rate of technical progress. b. government spending, growth in prices, and labor productivity. c. cyclical fluctuations and growth in the capital stock. d. growth in real GDP, nominal GDP, and the population.