If demand for a seller's product is elastic, a price decrease will increase total revenue
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage. b. Sam's time. c. Diane's tips. d. Sam's tips. e. Both Diane's and Sam's tips.
If a bank receives $2,500 of reserves by selling a government bond to the Fed, its ability to make loans increases by $2,500
a. True b. False Indicate whether the statement is true or false
No society can provide its citizens with everything that they want because of
a. greedy politicians b. lazy workers c. an educational system that does not provide hands on experience d. firms that strive to maximize profits e. a scarcity of resources