At a price of $20 each, the demand for t-shirts from a group's fundraising activity is unit elastic. Thus, the group's total revenue from selling t-shirts ________ at a price of $20 each.
A. will equal $0
B. will equal $1
C. reaches its minimum
D. reaches its maximum
Answer: D
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A diagram that shows the maximum amount of one type of good that can be produced in an economy, given the production of the other is known as
A) an indifference curve. B) the tradeoff schedule. C) the production possibility frontier. D) the balance of trade.
One reason for computing the logarithms (ln), or changes in logarithms, of economic time series is that
A) numbers often get very large. B) economic variables are hardly ever negative. C) they often exhibit growth that is approximately exponential. D) natural logarithms are easier to work with than base 10 logarithms.
The elasticity of supply is defined as the ________ change in quantity supplied divided by the _______ change in price.
a. total; percentage b. percentage; marginal c. marginal; percentage d. percentage; percentage
The term “recession” refers to a
a. period of decline in real GDP over two consecutive quarters. b. fall in the general level of real wages over two consecutive quarters. c. fall in the CPI over two consecutive quarters. d. fall in the rate of increase of real per capita GDP.