Refer to the following graph.
Which of the following curves demonstrates a unit elastic demand curve? (That is, a curve where elasticity is 1 at each point.)
A. A
B. B
C. C
D. None of the answers is correct.
Answer: D
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When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume
A) the girl was made worse off while John was made better off. B) the girl was made better off while John was made worse off. C) both parties were made worse off. D) both parties were made better off.
Which of the following was illustrated by the majority voting decisions witnessed during the Great Depression?
(a) If the U.S. wants to get the most from its resources, the pricing of goods and allocation of investment should be decided by majority voting. (b) In a representative democracy, majority voting will assure that approved projects are productive. (c) There are good reasons to expect that majority voting will sometimes result in the approval of projects that are inefficient. (d) Private firms can force their customers to pay for products they produce, but the government cannot do so.
A firm's total revenue
a. is the profit it earns by producing and selling a particular quantity of output b. varies as output varies along the demand curve the firm faces c. is constant at all points along a fixed demand curve d. is determined by subtracting total profit from total cost e. always decreases as its output increases, because costs rise
In 2015, U.S. GDP was almost
a. $18 trillion. b. $15 trillion. c. $14 trillion. d. $12 trillion.