If a firm facing a linear demand curve experiences an increase in total revenue after lowering the price:
A. the initial price was set at a point where the demand is inelastic.
B. the initial price was set at a point where the demand is elastic.
C. the new price is set where the demand is perfectly elastic.
D. the new price is set where the demand is perfectly inelastic.
Answer: B
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Which statement CORRRECTLY describes "structural unemployment"?
A) Structural unemployment occurs mainly during recessions. B) Structural unemployment is also called "frictional unemployment." C) Structural unemployment occurs even when the economy is at the natural unemployment rate. D) The amount of structural unemployment depends on normal labor turnover.
Which of the following demonstrates the endowment effect?
A) If you received a good as a gift, you are less likely to attach a monetary value to the good. B) Isabella was not willing to part with her "Chris Hemsworth" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster. C) Chris Hemsworth commands a premium in the movie industry because he is endowed with dashing looks. D) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
Gross domestic product measures the:
a. wholesale value of all goods and services produced by U.S. owned corporations. b. market value of all final goods and services produced during a year by resources located in the United States. c. initial production value of foreign and Untied States owned corporations who pay taxes in the United States. d. aggregate consumer purchases of goods and services sold in a year in the United States.
A constant-cost industry is one in which:
A. the demand curve is horizontal. B. the long-run supply curve is horizontal. C. the short-run supply curve is horizontal. D. All of these