Demand can be said to be inelastic when:
A. an increase in price results in a reduction in total revenue.
B. the elasticity coefficient exceeds one.
C. a reduction in price results in a decrease in total revenue.
D. a reduction in price results in an increase in total revenue.
Answer: C
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The effect on short-run equilibrium output of a one-unit increase in expenditure is called:
A. the income-expenditure multiplier. B. Say's law. C. the marginal propensity to consume. D. average labor productivity.
The quantity of labor supplied increases as the real wage rises because
A) higher real wages mean that nominal wages have increased. B) the opportunity cost of working increases. C) the quantity of labor demanded increases. D) labor force participation decreases so that only serious workers are left in the labor force. E) the opportunity cost of leisure rises.
Using the information in the table above, calculate the value of GDP
A) $185 million B) $145 million C) $195 million D) $140 million
Which of the following is a category (degree) of inflation?
(a) Deflation. (b) Externally induced inflation. (c) Demand-Pull inflation. (d) Stagflation.