A price increase will cause an increase in total revenue when:
A. the price effect outweighs the quantity effect.
B. the quantity effect outweighs the price effect.
C. demand is perfectly elastic.
D. demand is unit elastic.
A. the price effect outweighs the quantity effect.
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The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices. What is the value of the CPI for the base period 2000?
A) 140 B) 100 C) 30 D) 75 E) 133
The movement in U.S. population from the farms to urban areas was caused primarily by
a. each member of a farm family specializing in a particular set of tasks b. a sharp increase in farm productivity c. a decline in the demand for labor in urban areas d. a sharp decline in the demand for agricultural products e. increased education among married women
Which of the following is NOT a characteristic of an increasing cost competitive industry? As the industry expands in the long run,
A. the number of firms increase. B. the price of product remains constant. C. the prices of some inputs rise. D. the cost of production increases. E. none of the above
Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase real GDP and increase the price level. B) increase real GDP and decrease the price level. C) decrease real GDP and increase the price level. D) decrease real GDP and decrease the price level.