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
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.
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.