Suppose we observe that as a firm increases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand?
A. 0.25
B. 0.5
C. 1
D. 2
Answer: D
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If the consumption of a good decreases the quantity available for another person, the good is
A) rival. B) excludable. C) pure. D) free.
The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age. What did this technological change do the short-run supply curve?
A) It moved the economy up along a stationary short-run aggregate supply curve. B) It shifted the short-run aggregate supply curve to the left. C) It shifted the short-run aggregate supply curve to the right. D) It moved the economy down along a stationary short-run aggregate supply curve.
As of the end of 1994 which of the countries in our survey had the largest proportion of stock held by the government?
A) The United Kingdom B) The United States C) Japan D) Germany
Consumers often purchase products that, afterward, they regret purchasing. This can be explained by
A) consumers trying products to determine if their consumer surplus increases. B) consumers trying products to determine if firm advertising is honest. C) consumers trying to minimize expenditures. D) consumers trying to maximize choice.