The demand for hamburger buns is known to be elastic. This means that if the price of the product increases,
A. total revenue will rise.
B. total revenue will stay the same.
C. the quantity demanded will rise.
D. total revenue will fall.
D. total revenue will fall.
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What are lawmaking lags? What effect do they have on the use of discretionary fiscal policy?
What will be an ideal response?
Which of the following statements correctly uses the concept of opportunity cost in decision making?
I. "Because my secretary's time has already been paid for, my cost of taking on an additional project is lower than it otherwise would be." II. "Since NASA is running under budget this year, the cost of another space shuttle launch is lower than it otherwise would be." A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to:
a. rise and the equilibrium quantity to fall. b. rise and the equilibrium quantity to stay the same. c. rise and the equilibrium quantity to rise. d. stay the same and the equilibrium quantity to fall.
(Last Word) The fallacy of composition states that:
A. because economic systems are composed of so many diverse economic units, economic laws are necessarily inexact. B. the anticipation of a particular event can affect the composition of that event when it occurs. C. what is true for the individual must necessarily be true for the group. D. because event A precedes event B, A is necessarily the cause of B.