Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price, if price decreases and, in percentage terms, quantity rises more than price has dropped, total revenue will
A) increase.
B) decrease.
C) remain the same.
D) either increase or decrease.
A
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In monopolistic competition, in the long run firms have
A) a capacity shortage. B) excess capacity. C) an economic profit. D) an economic loss.
Examples of incentive pay include
a. allowing employees a certain number of personal days b. providing onsite parking for employees c. bonuses for meeting deadlines d. offering a certain number of sick days
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?
a. The impact on both price and quantity is ambiguous. b. Price will increase; quantity is ambiguous c. Price will increase; quantity will increase d. Price will increase; quantity will decrease e. Price will decrease; quantity is ambiguous.
With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
A. passage of legislation reducing the workweek to 30 hours. B. instituting a tax policy encouraging consumption at the expense of investment. C. instituting a tax policy encouraging investment at the expense of consumption. D. an increase in the marginal income tax rate, which would reduce the work effort of individuals.