Other things the same, if a price change causes total revenue to change in the opposite direction, demand is:
A. perfectly inelastic.
B. relatively elastic.
C. relatively inelastic.
D. of unit elasticity.
Answer: B
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Which of the following is used to explain why a consumer's willingness to buy a cell phone increases as the number of other people who own and use cell phones increases?
A) network externalities B) diminishing marginal utility C) market failure D) the income effect of a price change
The Policy Trilemma states that a country or a monetary union can't pursue the following three policies at the same time
A) capital control, a fixed exchange rate, and an independent monetary policy. B) free capital mobility, a fixed exchange rate, and an independent monetary policy. C) free capital mobility, a flexible exchange rate, and an independent monetary policy. D) capital control, a flexible exchange rate, and an independent monetary policy.
Suppose a fishing boat reaches its most productive use of each person's talent with 15 crew members. More than 15 workers would cause overcrowding. If there are only 10 crew members currently on the boat, adding one more crew member will
a. require the owner to add another boat b. increase the level of labor productivity c. have no effect on labor productivity d. reduce the need for other variable inputs such as fuel e. reduce the total variable cost of operating the fishing boat
Keynesian economists believe that
a. an increase in the money supply leads to a higher price level b. price changes adjust the value of the goods produced to the money supply c. velocity and output are constant in the short run d. an increase in production, if the money supply is held constant, will cause velocity to increase e. an increase in the money supply leads to a decrease in nominal GDP