A rise in the price of a product lowers the total revenue from the product if the
A) income elasticity of demand exceeds 1.
B) good is an inferior product.
C) demand for the product is inelastic.
D) demand for the product is elastic.
D
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The underground economy can be described as
A) production of intermediate goods and services. B) economic production that includes mining. C) production of infrastructure that spurs growth in the rest of the economy. D) economic activity that is hidden from the government to avoid taxes or because the activity is illegal.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Suppose you operate a factory that produces 500 lawn mowers a week. If your weekly variable cost is $40,000 and your weekly total cost is $50,000, the average:
A. cost of production is $80. B. fixed cost of production is $80. C. variable cost of production is $100. D. fixed cost of production is $20.
Marginal utility can be:
A. positive, but not negative. B. positive or negative, but not zero. C. positive, negative, or zero. D. decreasing, but not negative.