Refer to the information provided in Figure 5.4 below to answer the question(s) that follow.
Figure 5.4Refer to Figure 5.4. The demand for milkshakes is unit elastic at Point C. If a store increases the price of a milkshake from P4 to P3, its total revenue will
A. decrease.
B. either increase or decrease.
C. remain constant.
D. increase.
Answer: D
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Under conditions of perfect competition, if profits are being made,
a. new firms are attracted into the industry. b. the market supply decreases. c. average revenue increases. d. new firms are excluded.
What happened to the risk premium on Baa corporate bonds during the Financial Crisis of 2007-2009?
A) it declined slightly B) it rose to about 2% C) it rose to about 4% D) it rose to about 6%
Suppose that there is a current account deficit of $250 billion and a capital account surplus of $260 billion. It may be concluded that the
A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.
Which of the following is not an example of scarcity?
a. Only some people can afford to buy a BMW automobile. b. Every individual in society cannot attain the highest standard of living to which he or she might aspire. c. Miranda has more oranges in her orchard than she will ever use. d. Each member of a household cannot get everything he or she wants.