The demand for a good is elastic if
A) an increase in its price results in an increase in total revenue.
B) a decrease in its price results in a decrease in total revenue.
C) an increase in its price results in a decrease in total revenue.
D) the good is a necessity.
C
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________ is the relationship according to which the perceived change in any stimulus varies according to the size of the change measured as a proportion of the original stimulus.
A. Regression to the mean B. The adaptive rationality standard C. The Weber-Fechner law D. The representative heuristic
A perfectly competitive ebook publishing firm currently sells its ebook at the market price of $6. Its average total cost is $5.50. In this case:
a. since average total cost is less than the price, the firm will shut down. b. the firm has positive economic profits. c. the firm is losing money but will continue to operate. d. the firm has zero economic profits.
If a person is concerned that an additional $1,000 income will move him/her into a new tax bracket, that person is worried about the:
A. proportional rate. B. regressive tax rate. C. marginal tax rate. D. flat tax rate.
The government is like a private borrower in that ________, but the government is NOT like a private borrower in that ________.
A. the government can simply increase its income to pay back debts; the government pays interest on debts B. the government does not pay interest on debts; the government can simply increase its income to pay back debts C. the government pays interest on debts; the government can simply increase its income to pay back debts D. the government can simply increase its income to pay back debts; the government does not pay interest on debts