When the slope of a demand curve is constant, price elasticity of demand can vary.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 24-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's implicit costs?
A. $64,000 B. $72,000 C. $4,000 D. $60,000
Currently, union membership in the United States is about:
a. 10 percent. b. 15 percent. c. 20 percent. d. 25 percent.
Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand is D0:
A. the firm will raise the price above P0 to increase profit. B. this market is in short-run equilibrium but not long-run equilibrium. C. this market is in long-run equilibrium because the firm is earning zero economic profit. D. this market is in long-run equilibrium because the firm is earning positive economic profit.