Exhibit 5-1 Demand curve
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In Exhibit 5-1, between points a and b, the price elasticity of demand is:
A. 0.67.
B. 1.5.
C. 2.0.
D. 1.0.
Answer: D
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Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000 . and explicit costs were $10,000 . Calculate Ernie's accounting profit
a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) equals: a. 0.5
b. the multiplier. c. the slope of the consumption function. d. 1.0. e. the slope of the saving function.
A union wants to increase its members' wages without reducing employment. Which of the following strategies might achieve that goal?
a. setting a high minimum wage rate for its members b. increasing the number of members in the union c. pushing employers not to allow featherbedding of workers d. training its members to work more productively
Gross Domestic Product is a dollar measure of
a. total gross investment in an economy. b. total industrial sales in a particular time period. c. the total physical product of the economy. d. the value of all final goods and services produced in one time period.