If a firm increases its prices when the demand is inelastic, then the firm will see
A. an increase in revenues.
B. a decrease in revenues.
C. no change in revenues.
D. no effect on the sales of its product.
Answer: A
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In the IS-LM model, if interest rates rise while output falls the
a. money supply must have fallen. b. price level must have fallen. c. money supply must have risen. d. level of government spending must have fallen. e. none of the above.
Any item that people can use to transfer purchasing power from the present to the future is called
a. a medium of exchange. b. a unit of account. c. a store of value. d. None of the above is correct.
The longer the time frame involved, the more likely it is that the demand will be relatively
A. elastic. B. flat. C. inelastic. D. steep.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.