Other things being equal, the lower the value of elasticity:
A. the more likely the profitability of a price increase.
B. the less likely the profitability of a price increase.
C. the greater the responsiveness in quantity demanded to a price change.
D. the lower the corresponding increase in firm revenue.
A. the more likely the profitability of a price increase.
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If an industry is a constant-cost industry
a. prices of its inputs increase even though output remains constant b. it uses inputs at higher levels of output c. prices of its inputs rise at a constant rate as it uses more inputs d. prices of its inputs remain constant as the number of firms increases e. firms in the industry experience economies of scale
If the CPI was 140 at the end of 2007 and 150 at the end of 2008, what was the inflation rate in 2008?
A) 10 percent B) 6.67 percent C) 6.25 percent D) 7.14 percent E) 8 percent
Full employment means which of the following is zero?
A. structural unemployment B. cyclical unemployment C. frictional unemployment D. aggregate unemployment
When the unemployment rate equals the natural unemployment rate, most likely the economy is producing
A) on the production possibilities frontier. B) within the production possibilities frontier. C) beyond the production possibilities frontier. D) either on or within the production possibilities frontier. E) either on or beyond the production possibilities frontier.