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Julia knows that the price elasticity of movie rentals is 3. She knows, therefore, that if she raises her price from $2 to $2.50, her rentals will drop by approximately
A. 150 percent. B. 100 percent. C. 75 percent. D. 33 percent.
For a firm hiring a resource in a perfectly competitive resource market, its demand curve for the resource is its
a. marginal product curve b. marginal revenue product curve c. marginal resource cost curve d. marginal revenue curve e. total revenue curve
Classical economists believed that
a. full employment was an unrealistic goal. b. the economy was essentially unstable. c. the economy naturally tended toward full employment. d. employment did not matter.
Answer the following statements true (T) or false (F)
1. The supply of money is inversely related to the level of total income and output. 2. The transactions approach to the equation of exchange can be expressed as MV = PQ. 3. The velocity of money is equal to PQ/M. 4. If M equals $40, V equals 16, and Q equals 16, then P equals $40. 5. If M triples, V remains the same, and Q doubles, then P rises.