The greater the price elasticity of market demand, the less will be the reduction in market output from a price floor.
Answer the following statement true (T) or false (F)
True
Rationale: See Graph 18.6 in the text.
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The revenue received from the sale of an additional unit of a product
A) is called a net gain. B) is a marginal benefit to the firm. C) is called profit. D) is called gross sales.
For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that
a. an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus. b. an import quota has no effect on producer surplus, while a tariff decreases producer surplus. c. a tariff raises total surplus, while an import quota does not. d. a tariff raises revenue for that country's government, while an import quota does not.
If land and capital are complementary resources and the price of land goes down, the employment of capital ______.
Fill in the blank(s) with the appropriate word(s).
Real GDP refers to ________.
A. GDP data that does not reflect changes in both physical output and the price level B. the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income C. GDP data that embodies changes in the price level but not changes in physical output D. GDP data that has been adjusted for changes in the price level