If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then:
A. the demand for the product is elastic in the $6-$5 price range.
B. the demand for the product must have increased.
C. elasticity of demand is 0.74.
D. the demand for the product is inelastic in the $6-$5 price range.
Answer: A
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Diminishing marginal returns to labor occur because
A) after a while it is hard to find a good worker. B) the capital resources used by the firm are fixed in the short run. C) workers become more efficient over time. D) larger companies are less efficient.
The option holder is:
A. the buyer of an option. B. always a speculator. C. another name for the clearinghouse used in futures contracts. D. the seller of an option.
Which of the following has been observed in the developing countries during 1990-2016?
A. The East Asian countries like South Korea, Singapore, and Taiwan reported negative growth rates. B. Countries like China and Vietnam reported positive but low growth rates. C. Several of the countries in Eastern Europe and Central Asia that were making a transition from a centrally planned economy to a market-based economy reported a decline in the per capita income. D. The dispersion in the growth rates of the developing countries has been negligible during 1990-2016.
A firm that is earning a positive profit in the short run and expects to continue doing so has an incentive to expand its scale of operation in the long run.
Answer the following statement true (T) or false (F)