A production goal may be set too high by upper management because
a. they are unsure about the actual costs of production
b. they under-estimate the difficulty of meeting a goal
c. division managers over-state the difficulty of meeting the goal
d. all of the above
d
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The price elasticity of demand for gasoline is 0.40. If the price of gasoline rises by 20 percent, there will be
A) a decrease of more than 20 percent in the quantity of gasoline demanded. B) an increase in the total revenue received from the sale of gasoline. C) a loss of total revenue for gasoline producers, because at a higher price the quantity of gasoline demanded decreases. D) no change in the quantity of gasoline sold because people need gasoline.
Why is the minimum of the average variable cost curve called the shutdown point?
What will be an ideal response?
The long run result of the government responding to a negative supply side shock with increased spending will be a:
A. faster recovery, but it will cause even greater inflation. B. slower recovery, if they misjudge their own spending. C. faster recovery at a lower price level than allowing short-run aggregate supply to adjust on its own. D. slower recovery, but it will cause inflation to be lower than if they did nothing.
If the supply curve of labor shifts to the left, we know for certain that
a. technology has improved b. a higher wage rate must be offered to employ the same number of workers that were employed before the shift in the curve occurred c. any quantity of workers can be hired at the same wage d. the MRP has decreased e. the MRP has increased