The price of a good rises by 12 percent and the price elasticity of demand for the good is 0.85. Which of the following is a CORRECT interpretation of these facts?
A) When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent.
B) For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent.
C) For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent.
D) For each 1 percent that the price rose, the quantity demanded decreased by 0.85 percent.
D
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All of the following describe the conflict between divisions EXCEPT
a. some activities across divisions benefit from coordination b. managers of cost centers care too little about enhancing revenues c. managers are rewarded only for how well their own division is run d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
At the international level, the division of labor increases output through
a. tariffs. b. economies of scale. c. standardization. d. exchange rates.
Increasing returns to scale occurs when a firm's:
a. average costs of production increase as its output increases. b. average costs of production decrease as its output increases. c. average fixed costs increase as its output increases. d. marginal costs increase as its output increases.
Checking account balances are:
A. not included in M1. B. not money. C. included in M2 but not M1. D. included in M1 and serve as a medium of exchange.