Which of the following will be most likely to contribute to the growth of a less-developed country?
a. price controls that keep the cost of agricultural products low
b. rapid population growth
c. exchange rate controls and export restrictions
d. secure property rights and low marginal tax rates
D
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Which goods have more elastic demands?
A) goods with many substitutes B) goods which are necessities C) goods with few substitutes D) goods whose purchase represents a small percentage of income
In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero,
a. price is less than average total cost b. total revenue is less than total cost c. they cannot pay variable costs with total revenue d. variable cost is greater than fixed cost e. price is less than fixed cost
In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Induced expenditure equals:
A. 320 + 0.25Y. B. 0.75Y. C. 290 + 0.75Y. D. 0.25Y.
Demand for a good is inelastic if:
A. the quantity effect outweighs the price effect of a price increase. B. total revenue decreases when price increases. C. total revenue increases when price increases. D. the absolute value of price elasticity is greater than 1.