If the elasticity of demand for tongue depressors is 0.5,
A. a 10% rise in the price of tongue depressors will lower quantity demanded by 50%.
B. an increase in the price of tongue depressors will lower total revenue for sellers.
C. a 10% increase in the price of tongue depressors will not change its total revenue.
D. a 10% fall in the price of tongue depressors will raise quantity demanded by 5%.
D. a 10% fall in the price of tongue depressors will raise quantity demanded by 5%.
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Production of a small quantity of an input is often ________ as firms typically ________ able to enjoy economies of scale.
A) profitable; are B) profitable; are not C) unprofitable; are not D) unprofitable; are
The marginal factor cost is the
A) additional revenue obtained from a one-unit change in labor input. B) additional revenue obtained from a one-unit change in output. C) change in output resulting from the addition of one more worker. D) cost of using an additional unit of an input.
If the velocity of money is 5, then each dollar must have exchanged hands on average 5 times per ______.
a. day b. week c. month d. year
Nearly all of the budget deficits we had in the 1980s were
A. under $10 billion. B. between $100 billion and $200 billion. C. between $200 billion and $300 billion. D. over $300 billion.