Suppose that along a linear demand curve, the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units. Then the
A) total revenue is at its maximum when 100 units are produced.
B) marginal revenue is positive at 100 units.
C) marginal revenue is negative at 100 units.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
A
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Savings-and-loans were originally federally insured through the
A) FDIC. B) FSLIC. C) NCUSIF. D) Comptroller of the Currency.
What is the primary difference between bundling and tie-ins?
A) Bundling is typically a one-off purchase. B) Contractual arrangements. C) Tie-ins are one-off purchases. D) Bundling is illegal and tie-ins are legal.
Alexandria, a British citizen, owns and manages a fish and chips shop in Washington, D.C. She buys fresh food produced by U.S. workers, pays utilities to a U.S. company, and employs only U.S. citizens. What part, if any, of the restaurant's production is included in U.S. GDP? What part, if any, of the restaurant's production is included in U.S. GNP?
As fiscal consolidation takes place, the central bank should
A) decrease the policy rate. B) increase the policy rate. C) increase inflation rate. D) decrease money supply.