If demand is price elastic, a decrease in price results in a(n)
a. decrease in total expenditure on the good
b. unfavorable shift in tastes and preferences
c. decrease in total cost for the seller
d. increase in supply of the good
e. increase in total revenue to the seller
E
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The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.
During a severe recession, we would expect output to fall the most in
A. agriculture. B. the construction industry. C. the clothing industry. D. the health care industry.
Market power is
A. The ability to alter the market price of a good or service. B. A characteristic of all market structures. C. Enjoyed by all firms at high levels of output. D. Most common for competitive firms.
When growth goes down, unemployment tends to go:
A. up shortly after, and vice versa. B. down shortly after, and vice versa. C. down at the same time, and vice versa. D. up at the same time, but remains sticky on the way down and lags behind.