Refer to the information provided in Figure 5.4 below to answer the question(s) that follow.
Figure 5.4Refer to Figure 5.4. The demand for milkshakes is unit elastic at Point C. If the milkshake price falls from P1 to P2, total revenue will
A. either increase or decrease.
B. decrease.
C. increase.
D. remain constant.
Answer: C
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Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.
Answer the following statement true (T) or false (F)
Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as
A) economic inefficiency. B) moral hazard. C) market failure. D) bad faith.
The clearest indicator of a switch to a less expansionary fiscal policy is a
A) rise in the actual deficit. B) fall in the actual deficit. C) rise in the natural employment deficit. D) fall in the natural employment deficit.
Which is a good example of an increase in total factor productivity?
A) a tax cut B) good weather C) a company reducing its workforce D) better credit conditions