If the demand curve for a good is elastic, consumers will spend more on that good when its price increases
a. True
b. False
Indicate whether the statement is true or false
False
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By 1850, the single largest U. S. commodity export (in terms of value) was:
a. iron railroad tracks. b. wheat. c. cotton. d. slaves.
If a monopolist's marginal revenue exceeds its marginal cost at its current level of output, then to maximize its profit the monopolist should:
A. do nothing. B. increase output until price equals marginal cost. C. decrease output in order to increase the gap between marginal revenue and marginal cost. D. increase output until marginal revenue equals marginal cost.
After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
A. increase in taxes. B. reduction in transfer payments. C. increase in government purchases. D. All of the above are correct.
The income elasticity of demand for education is 3.5. Thus, a 6% decrease in income will
A. increase the quantity of education demanded by 6%. B. increase the quantity of education demanded by 21%. C. decrease the quantity of education demanded by 3.5%. D. decrease the quantity of education demanded by 21%.