If demand is inelastic and the price falls, the total revenue
A) rises.
B) falls.
C) remains constant.
D) might rise, fall, or remain constant.
E) becomes negative.
B
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The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy up along a stationary short-run aggregate supply curve. B) It shifted the short-run aggregate supply curve to the left. C) It moved the economy down along a stationary short-run aggregate supply curve. D) It shifted the short-run aggregate supply curve to the right.
The past two decades has seen a steady increase in the share of total taxes paid by high-income groups
a. True b. False
Who does NOT earn economic rent in a competitive factor market?
A) No one B) Everyone C) The last factor of production hired D) The inframarginal workers E) Only owners of physical properties earn economic rents
The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rational people
a. consider sunk costs. b. equate prices to the average costs of production. c. prefer to purchase products from smaller rather than larger firms. d. think at the margin.