If demand is price inelastic, when price falls, the total revenue ______, and when price rises, the total revenue _____.
a. falls; remains constant
b. remains constant; rises
c. falls; rises
d. rises; falls
c. falls; rises
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A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?
A) The quantity supplied would decrease, the quantity demanded would increase, and the equilibrium price would decrease. B) The price would decrease, quantity demanded would increase, and quantity supplied would decrease. C) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease. D) The price would decrease, the demand would increase, and the supply would decrease.
A rise in Durable Goods Orders should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Exhibit 6-5 Workers and output data Laborers TotalProduct 0 0 1 8 2 20 3 25 4 28 5 29 In Exhibit 6-5, diminishing returns set in when the ____ worker is hired.
A. first B. second C. third D. fourth