If demand is price elastic, a decrease in price causes:
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue.
d. an increase in quantity, but anything can happen to revenue.
a
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The natural unemployment rate is the result of
A) job search and job rationing. B) insufficient demand for labor. C) the Lucas Wedge. D) the Okun Ga
Deflation will
A) increase the quantity of real GDP demanded. B) decrease aggregate demand. C) increase aggregate demand. D) decrease the quantity of real GDP demanded.
A firm has the choice of offering "dirty" jobs that are likely to cause severe health problems for its workers or of offering "clean" jobs by installing safety equipment at a cost of $5 per hour per employee that will substantially reduce the chances of health problems. The firm will
A. install the safety equipment if workers can ascertain whether they are working a dirty or a clean job. B. never willingly choose to install the costly safety equipment. C. willingly install the safety equipment if workers are willing to be paid $7 per hour less in a clean job than in a dirty job. D. install the safety equipment if workers are willing to be paid $3 per hour less in a clean job than in a dirty job. E. never install the safety equipment without a government subsidy to do so.
Which are not generally considered to be complementary goods?
a. Beef and chicken b. Razors and razor blades c. Gasoline and motor oil d. Beer and pretzels