What term describes demand with an elasticity of less than 1?
a) unitary elastic
b) inelastic
c) low
d) elastic
Ans: b) inelastic
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If input prices are constant, a firm with increasing returns to scale can expect
A) costs to double as output doubles. B) costs to more than double as output doubles. C) costs to go up less than double as output doubles. D) to hire more and more labor for a given amount of capital, since marginal product increases. E) to never reach the point where the marginal product of labor is equal to the wage.
A money market mutual fund account is a(n): a. checking account that earns interest
b. savings account against which one can write checks. c. group of stocks sold under one name. d. claim on a collection of interest-earning assets that is not guaranteed by the FDIC. e. account with which the Fed buys and sells U.S. government securities.
Assuming the Fisher Effect holds, and given U.S. tax laws, an increase in inflation
a. increases the real interest rate and the after-tax real rate of interest. b. increases the real interest rate and the after-tax real rate of interest. c. does not change the real interest rate but raises the after tax real rate of interest. d. does not change the real interest rate but reduces the after-tax real rate of interest.
What are the possible costs of a service failure?
a. Back orders b. Lost suppliers c. Lost sales d. Lost customers e. All of the above f. Only A, C, and D