Refer to the following figure. At a price of $10, the point elasticity of demand for D3 is ________ and marginal revenue is ________.
A. -0.5; negative
B. -5; positive
C. -0.2; negative
D. -1; zero
Answer: B
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Expansionary monetary policy is achieved by:
A) decreasing the amount of bank reserves and lowering the federal funds rate. B) decreasing the amount of bank reserves and raising the federal funds rate. C) increasing the amount of bank reserves and lowering the federal funds rate. D) increasing the amount of bank reserves and raising the federal funds rate.
On which type of unemployment can monetary policy have the most effect? Why?
What will be an ideal response?
If a production process exhibits diminishing returns, then as output rises:
A. total revenue will eventually decrease. B. average total cost will eventually decrease. C. marginal cost will eventually increase. D. total fixed cost will eventually increase.
What do you have to know to calculate the price elasticity of demand?
a. how much of the good was purchased at each of two different prices b. the price elasticity of supply c. how many firms supply the good d. the portion of income the typical consumer spends on the good