The supply curve will be more inelastic when:
A. inputs to production are scarce.
B. firms' response to a price change is limited by the limited capacity of their production facilities.
C. a good has many substitutes.
D. the firm is experiencing diminishing returns to a variable input.
Answer: B
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Demand for a factor can shift for all of the following reasons except?
A. Change in demand for the final product B. Change in the factor's price C. Change in the price of other factors D. Change in technology
Which of the following will be included in the calculation of GDP using expenditures to calculate it?
A) Interest earned on money lent out B) Investments in machineries C) Dividend earned on shares D) Value added in the production of a good
In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
If you are testing the null hypothesis, you are testing
A) the hypothesis that the coefficient for an explanatory variable is zero and therefore has no impact on your results. B) whether or not price should be set to 0. C) the relationship between the t-statistic and the standard error. D) the hypothesis that setting a given price will yield no increase in profits.