Refer to Scenario 10.7. Suppose that the firm chooses to produce 200 ink pads. At this level of output the demand for ink pads is
A) inelastic.
B) unit elastic.
C) elastic.
D) unit elastic.
C
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Economies of scale are illustrated by:
A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve.
Suppose a company expects prices in general to rise by 5%, but the price of its product rises by 2%. How will the company respond to the price change?
A) It will increase production since it's getting a higher price for the product. B) It will increase production more slowly since it's price is rising more slowly than average. C) It will reduce production since it perceives a relative decline in the demand for its product. D) It will stop production and shut down until prices rise more quickly.
When price level in the United States rises,
a. there is a increased demand for borrowed money. b. producers' demand for new machinery increases, contributing to an increase in aggregate demand. c. Americans tend to buy more foreign goods and services. d. the French, Canadians, and Japanese would find our exports more attractive. e. to replenish the value of your real wealth, you would save less and consume more.
To move from gross domestic product (GDP) to gross national product (GNP), one must:
A. add depreciation to GDP. B. subtract depreciation from GDP. C. add net foreign factor income to GDP. D. subtract net foreign factor income from GDP.