An increase in the government's budget surplus means
a. public saving is greater than $0 and increasing.
b. public saving is greater than $0 and decreasing.
c. public saving is less than $0 and increasing.
d. public saving is less than $0 and decreasing.
a
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What is the relationship between a firm's value of marginal product curve for labor and its demand for labor curve? Explain why this relationship exists
What will be an ideal response?
A mail-order clothing company offers a discount if customers purchase two shirts instead of only one. This is necessarily an example of quantity discrimination
Indicate whether the statement is true or false
If Matthew raises the price of his muffins from $2 to $3 and his total revenue increases from $35,000 to $38,000 . then
a. the demand for Matthew's muffins in this price range is price elastic b. the demand for Matthew's muffins in this price range is price inelastic c. the demand for Matthew's muffins in this price range is unit elastic d. the percentage change in quantity demanded must exceed the percentage change in price e. we know this is impossible because it violates the law of demand
If the firm in the diagram lowers price from P 1 to P 2 , it will:
A. lose P 1 P 2 ba in revenue from the price cut but increase revenue by Q 1 bcQ 2 from the
increase in sales.
B. lose P 1 P 2 ca in revenue from the price cut but increase revenue by Q 1 acQ 2 from the
increase in sales.
C. incur a decline in total revenue because it is operating on the elastic segment of the
demand curve.
D. incur an increase in total revenue because it is operating on the inelastic segment of the
demand curve.