The amount that must be paid to an individual to get them to invest in the industry is
A) a normal rate of return.
B) the explicit costs.
C) reinvestment.
D) financial capital.
Answer: A
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Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
Big Al’s Burger Emporium lowered the price of its burgers from $8 to $6. The firm saw sales of burger increase from 1,200 per week to 2,000 per week. This implies that the price elasticity (dropping any negative signs) is
A. 0.29 B. 0.57 C. 1.75 D. 0.50
A legally mandated minimum wage is an example of:
a. the invisible hand principle. b. a price floor. c. a price ceiling. d. a fringe benefit.
A lower marginal propensity to consume is most likely to result in a(n): a. flatter aggregate expenditure line
b. steeper aggregate expenditure line. c. upward shift of the aggregate expenditure line. d. downward shift of the aggregate expenditure line.