In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is elastic.
B) decreases from $210 to $120 so demand is inelastic.
C) increases from $120 to $210 so demand is inelastic.
D) decreases from $210 to $120 so demand is elastic.
E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic, or unit elastic.
A
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Creative destruction refers to
A) the destruction of the government system which limits economic growth. B) the movement from an agricultural society to a service economy. C) the mechanism for establishing property rights. D) the creation of new jobs and economic growth after destroying old jobs.
Which of the following is a reason for the law of increasing opportunity cost? a. Some goods have limited alternative uses
b. Not all resources are equally adaptable to other uses. c. Prices of specific final goods increase as more of those goods are produced. d. Prices of specific final goods decrease as more of those goods are produced.
Paper money
a. has a high intrinsic value. b. is the primary medium of exchange in a barter economy. c. is valuable because it is generally accepted in trade. d. is valuable only because of the legal tender requirement.
Which of the following would shift a nation's production possibilities frontier inward?
A) discovering a cheap way to convert sunshine into electricity B) producing more capital equipment C) an increase in the unemployment rate D) a law requiring workers to retire at age 50