If the price rises and the total amount consumers spend on the good falls to zero, then demand must be
A. perfectly elastic.
B. elastic.
C. perfectly inelastic.
D. inelastic.
Answer: A
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The a firm's short-run cost curves shifts when there is a change in
A) technology B) the prices of factors of production C) the quantity of outputs D) Both answers A and B are correct.
Molly Sharp is producing a documentary about the plight of the six-toed ferrets of Sri Lanka. Molly has spent $125,000 of her own money on this project and the documentary is now complete
Molly just found out that no studio is willing to release her documentary and she must now shop it to cable television networks, where she knows she will not be able to recoup her investment. Which of the following statements regarding Molly Sharp's documentary is true? A) The $125,000 investment is an economic cost, and she will still make an accounting profit even if the television network willing to air her documentary pays her less than $125,000. B) She should not try to have her documentary aired on television because she cannot recoup her $125,000 investment. C) Since the $125,000 is a sunk cost, she should still try to have her documentary aired on television even though she will not see a profit. D) The $125,000 is a variable cost, so will not be incurred if she chooses not to have her documentary aired.
The unemployment rate among African American workers in the United States is higher than that among white workers
a. True b. False Indicate whether the statement is true or false
The marginal propensity to consume measures the ratio of the:
a. average amount of our disposable income that we spend. b. average amount of our savings that we spend. c. change in consumer spending to a change in money holdings. d. change in consumer spending to a change in interest rates. e. change in consumer spending to a change in disposable income.