Which of the following is a determinant of price elasticity of demand?
a. Availability of substitute goods
b. Excess capacity
c. Scale of production
d. Inventories
e. Cost of production
a
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When a firm doubles its inputs, its output:
A. will less than double. B. will double. C. will more than double. D. All of these are possible.
If the reserve ratio was 100 percent, then:
A. maximum lending would occur. B. banks would create money in the economy. C. banks would lend all of their deposits. D. no lending would occur using deposits.
The argument that supply for apartments is more elastic in the long run is based on the idea that
A. landlords will rent only what they have. B. people will change apartments quickly when there are small changes in rent. C. it is costly to move to a different location. D. it takes time to refurbish existing apartments or build new ones.
Which of the following definitions is correct?
A. Accounting profit + economic profit = normal profit. B. Economic profit - accounting profit = explicit costs. C. Economic profit = accounting profit + implicit costs. D. Economic profit - implicit costs = accounting profits.