The price elasticity of demand is ?2.0 for a certain firm's product. If the firm raises price, the firm manager can expect total revenue to:
A. increase.
B. remain constant.
C. decrease.
D. either increase or remain constant, depending upon the size of the price increase.
Answer: C
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The primary deficit is equal to
A) outlays - tax revenues. B) government purchases + transfers + net interest - tax revenues. C) outlays + net interest - tax revenues. D) government purchases + transfers - tax revenues.
Which of the following will cause an increase in the demand for the Venezuelan currency, the Venezuelan bolivar?
A) real interest rates in Venezuela fall B) U.S. residents change preferences in favor of goods produced in the United States C) real interest rates in the United States increase D) none of the above
Under the Bretton Woods agreements,
A. the IMF was created to punish countries that did not maintain fixed exchange rates. B. a system of fixed exchange rates based on gold was established. C. each country agreed to buy and sell its currency to maintain a fixed exchange rate. D. All of the above are correct.
What would be shown through a sustained increase in real output per capita?
a. the size of budget surpluses b. efficient use of scarce resources c. the value of human capital d. long-term economic growth