In Figure 4.2, at quantities smaller than Q1:
A. total revenue is falling.
B. price elasticity is greater than 1.
C. price and total revenue are directly related.
D. All of these
Answer: B
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Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?
A) Money supply B) Industrial production C) Inventory investment D) Residential investment
The law of increasing opportunity costs implies that: a. a production possibilities curve will be bowed inward toward the origin
b. a production possibilities curve will be bowed outward away from the origin. c. a production possibilities curve will be a straight line. d. a production possibilities curve will be upward sloping.
Which of the following is not true about the housing market?
a. The price of housing will increase or decrease in order to achieve an equilibrium b. An increase in the demand for housing will cause an increase in the quantity supplied of housing c. When the demand for housing increases, the price of housing will increase but the quantity supplied will not increase in the short run d. The housing market is a unique market because most people had to borrow money to buy their homes e. The only way to increase the supply of housing is to build more houses
Which of the following is true of a production possibility frontier?
a. Producing on the production possibilities frontier implies productive efficiency, and society producing where it wants to be producing implies allocative efficiency. b. Producing on the production possibilities frontier implies allocative efficiency, and society producing where it wants to be producing implies productive efficiency. c. Producing on the production possibilities frontier implies both productive efficiency and allocative efficiency. d. Producing where the society wants to be producing implies both productive efficiency and allocative efficiency.