If a company raises prices on a product with elastic demand, total revenues will probably decrease.
a. true
b. false
Ans: a. true
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Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?
a. $5,000 b. the other goods that could be produced with the resources that produce the ten monitors c. the profits that Hutch earns when it sells the ten monitors d. the profits that Hutch loses if it does not produce the monitors e. All of the above are correct.
Answering the For Whom to Produce question means that:
A. society is determining the size of the economic pie, B. scarcity no longer restricts production. C. society must have a method to decide who will be rich and who will be poor. D. an economy is selecting among its resources for production.
According to the above figure, equilibrium is at point
A. C. B. D. C. E. D. B.
When measuring the benefits from investing in human capital
A. we must include the costs of tuition and books but not the money made from part-time jobs. B. we must include the foregone earnings in the benefit calculation. C. in addition to the monetary benefits, the benefit from expanding horizons should be included. D. the only benefits come from the increase in salary because of going to school.