Which is likely to be more elastic: the demand for orange juice or the demand for a particular brand of orange juice? Explain
What will be an ideal response?
The demand for a particular brand of orange juice will be more elastic. There are many close substitutes (other brands). There are fewer substitutes for orange juice.
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If potential output equals 8,000 and short-run equilibrium output equals 8,500, there is a(n) ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.
A. recessionary; not change B. recessionary reduce C. recessionary; raise D. expansionary; raise
A firm in perfectly competitive industry is maximizing profit at Q = 3,000 . Then its fixed cost increases. The profit-maximizing output is now
a. greater than 3,000 and profit decreases b. less than 3,000 and profit decreases c. greater than 3,000 and profit is unchanged d. equal to 3,000 and profit decreases e. equal to 3,000 and profit increases
Assuming an economy is already experiencing full employment, then it must produce more consumer goods and fewer capital goods if it wishes to experience greater rates of economic growth over time
a. True b. False Indicate whether the statement is true or false
The government budget involves:
A. money coming in as tax revenues. B. money going out through government purchases. C. money going out to individuals for programs that do not involve goods or services. D. All of these are true.