Moving along an elastic portion of a demand curve, a small percentage change in price leads to a larger percentage change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
True
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The marginal revenue curve for a monopolist is the same as its demand curve.
Answer the following statement true (T) or false (F)
Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is
a. 8 units of output. b. 10 units of output. c. 122 units of output. d. 132 units of output.
The manufacturer of a robotic vacuum sets a minimum price of $500 for its new model, the IR10. Shopping for a vacuum with a budget of $750, Lyndsey buys an IR10 for $600. Which of the following is true?
a. producer surplus of $100 b. consumer surplus of $100 c. producer surplus of $250 d. consumer surplus of $250