If the price of a good decreases by 10% and the quantity demanded remains unchanged, then at that price, the good is
A. perfectly elastic.
B. inelastic.
C. perfectly inelastic.
D. elastic.
Answer: C
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No firm's total revenue could exceed its total opportunity costs if
A) all firms were price takers. B) prices always cleared the market. C) quantity demanded of every good equaled the quantity supplied. D) the future were completely predictable. E) there were no legal restrictions on entry into any industry.
Refer to Scenario 13.15. If the firms price simultaneously, equilibrium would be
A) an $80 price for Simple and a $70 price for Boring. B) an $80 price for Simple and a $25 price for Boring. C) a $35 price for Simple and a $70 price for Boring. D) a $35 price for Simple and a $25 price for Boring. E) a mixed strategy equilibrium.
Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity. To do this, GDP makes use of
a. market prices. b. statistical estimates of the value of goods and services to consumers. c. prices based on the assumption that producers make no profits. d. the maximum amount consumers would be willing to pay.
The larger the marginal propensity to save,
A) the smaller the multiplier. B) the larger the multiplier. C) the smaller the change in Real GDP, given a change in autonomous consumption. D) a and c E) none of the above