The price elasticity for beef is -0.5. If price for beef in the market increases (by a small amount), beef producers can expect their total value of sales (total revenue) to:
a. increase
b. decrease
c. stay the same
d. can't tell from the available information
a. increase
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The trade-off between the present and future consumption is measured by
A) the money cost of both the present and future consumption. B) the foregone present consumption. C) the difference between the money price of future goods and the money cost of producing them. D) the difference between the money price of present goods and the money cost of producing them.
A risk-averse individual is offered a gamble that promises a gain of $1000 with probability 0.25 and a loss of $300 with probability 0.75 . Given this situation, he or she will:
a. definitely take the gamble. b. definitely not take the gamble. c. definitely take the gamble if his or her income is high enough. d. take an action that cannot be determined given the information available.
Use the following graphs to answer the next question.
"The bigger the volume, the lower the cost, and we pass the savings on to you" is a familiar slogan. Its idea is illustrated in which of the above graphs?
A. Graph 1 B. Graph 2 C. Graph 3 D. Graph 4
Which of the following transactions will be included in the calculation of GDP using the expenditure method?
A) The sale of a used car by a consumer B) The payment made to a construction worker C) The purchase of a treasury bond by an investor D) The purchase of a private jet by the CEO of a company