The relationship between marginal revenue and elasticity is
A) when demand is elastic, marginal revenue is positive and when demand is inelastic, marginal revenue is negative.
B) whenever the elasticity is positive, marginal revenue is positive.
C) whenever the elasticity is negative, marginal revenue is positive.
D) when demand is elastic, marginal revenue is negative and when demand is inelastic, marginal revenue is positive.
E) that total revenue equals zero at the quantity for which the demand is unit elastic.
A
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
A tax imposed by the U.S. government on imported Chinese frozen shrimp would be an example of
A. a voluntary restriction. B. a quota. C. a tariff. D. a regulatory trade restriction.
When a variable is determined by a factor inside of the function or model being evaluated, it is said to be
A) endogenous. B) exogenous. C) unexplained. D) statistically insignificant.
Using the above table, a unit tax of $2 is imposed on the product. How much of the tax is paid by the producer?
A) $2 B) $1 C) $3 D) unable to determine