If a good is price inelastic, a decrease in price will:
A) decrease total revenue.
B) increase total revenue.
C) not affect income.
D) none of the above.
A
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Which of the following may NOT serve as a possible chain reaction for either fiscal or monetary policy?
A) G? ? Y? ? C? ? Y? ? C?.... B) T? ? Y? ? C? ? Y? ? C?.... C) M? ? i? ? I? ? Y? ? C?.... D) M? ? i? ? I? ? Y? ? C?.... E) M? ? i? ? I? ? Y? ? C?....
John has $4000 in savings to buy an engagement ring for his girlfriend even though he has no plans to propose in the near future. When his transmission needs to be replaced in his car, John charges the $2000 worth of auto repair. John's decision is an example of:
A. people recognizing that money is fungible. B. everyday expenses being easier to charge than big purchases. C. people making false distinctions about their money. D. over consumerism.
A corporation can raise funds by issuing all of the following except
a. common stock b. convertible stock c. bonds d. money e. preferred stock
Refer to Figure 7.3. Suppose a firm moves along the isoquant from point a to point b. The rate of substitution for labor with capital is:
A. 2.
B. -2.
C. ½.
D. -½.