Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly inelastic.
C
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A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
Higher income countries tend to collect _____________ as a percentage of their GDP than do low-income countries.
A. greater tax revenues B. smaller tax revenues C. about the same in tax revenues D. There is really no correlation between a country's wealth and the tax revenues it generates.
The natural rate of unemployment is the unemployment rate that would exist in the absence of _____
a. structural unemployment b. educated unemployment c. cyclical unemployment d. frictional unemployment e. underemployment
The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI
a. broader; more b. broader; less c. narrower; more d. narrower; less