Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied. This response means that gasoline has
A) an elastic supply.
B) an inelastic supply.
C) a unit elastic supply.
D) an inelastic demand.
E) an elastic demand.
A
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A perfectly competitive firm maximizes profits or minimizes losses in the short-run by producing at the output level at which:
a. marginal revenue equals marginal cost. b. total revenue equals total cost. c. total revenue is at a maximum. d. none of these.
The industry demand for labor in a competitive labor market
a. is the same as the individual demand for labor in a perfectly competitive market b. is a horizontal curve at the market wage rate c. slopes upward when there are diminishing returns d. is the sum of the individual firms' demand curves for labor e. is downward sloping only if all firms that employ labor are identical
If the owners of different types of resources, which are combined to produce an output, agree on organizational relationships that define their responsibilities toward one another they have formed a _____
a. group b. company c. distribution network d. team
Suppose a country attempts to be self-sufficient and doesn't trade with any other countries. From an economic perspective, citizens of this nation can be expected to
a. gain materially from this policy because they can consume more goods over time than if they engaged in trade with foreigners. b. produce less total value than they could if they specialized and engaged in trade with other nations. c. gain from more rapid growth since home markets are reserved for home producers. d. be just as well off without trade since the value of what is sent to other nations in trade just equals the value of what is received in trade.