For firms selling in competitive markets, the marginal revenue product curve slopes downward only because of increasing marginal returns to the resource
Indicate whether the statement is true or false
false
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If the price of Coca-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Coca-Cola is:
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic. E. perfectly elastic.
As a result of an open market purchase, bank reserves
A) rise and interest rates fall. B) fall and interest rates rise. C) and interest rates both rise. D) and interest rates both fall.
If new firms enter a monopolistically competitive industry, the demand facing a typical firm increases
a. True b. False Indicate whether the statement is true or false
The supply-side effects of a reduction in taxes are the result of
a. increases in the disposable income of households accompanying reductions in tax rates. b. the stimulus effects of increases in government expenditures. c. increased attractiveness of productive activity relative to leisure and tax avoidance. d. reductions in interest rates that generally accompany expansionary fiscal policy.