A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is ?4.0 and the cross-price elasticity of demand between Y and X is 2.0, then a 2 percent decrease in the price of X will:
A. leave total revenues from X and Y unchanged.
B. decrease total revenues from X and Y by $200.
C. increase total revenues from X and Y by $520.
D. decrease total revenues for X and Y by $600.
Answer: B
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The entrepreneur
A. runs his or her own business and risks his or her own money. B. does not necessarily run her or his own business nor risks her or his own money. C. runs his or her own business, but does not necessarily risk his or her own money. D. does not necessarily run her or his own business, but does risk her or his own money
Refer to Table 11-2. What is the marginal product of the 4th worker?
A) 230 bushels B) 57.4 bushels C) 50 bushels D) 12.4 bushels
A quota is a
a. tax imposed on each unit of an exported good b. tax imposed on each unit of an imported good c. change in the terms of trade between two nations d. result of opportunity cost differentials between two nations e. restriction on the quantity of a good that may be imported
A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation.
Answer the following statement true (T) or false (F)