Refer to the table. In relation to column (3), a change from column (1) to column (2) would mostly likely be caused by:
A. reduced taste for the good.
B. an increase in input prices.
C. consumers expecting that prices will be lower in the future.
D. government subsidizing production of the good.
A. reduced taste for the good.
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A straight-line demand curve with negative slope intersects the horizontal axis at 100 tons per week. At the midpoint on the demand curve (corresponding to 50 tons per week) the price elasticity of demand is
A) 0. B) 0.5. C) 1.0. D) unknown without more information.
Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good X?
A) Pramilla B) Sam C) George D) Lucas
In 1991, the base year, GDP was 5000. In 1993 the GDP deflator was 106. We may conclude that
A. GDP rose to more than 5000 in 1993. B. GDP fell to less than 5000 in 1993. C. GDP remained at 5000 in 1993. D. None of the choices are correct.
A purely competitive firm can be identified by the fact that:
A. There are other firms in the industry producing similar products B. It is making only normal profits in the short run C. Its average revenue equals its marginal revenue D. It experiences diminishing marginal returns