Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger increases from $2 to $4, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.33
B. -2.0
C. -3.0
D. -5.0
Answer: A
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The extent to which output responds to all inputs is referred to as
a. incremental capital-output ratio b. returns to scale c. indivisibilities d. gestation period e. none of the above
Referring to the graph above, an economic variable that had peaked in December 1912, and July 1918 is likely a ________ variable
A) leading countercyclical B) leading procyclical C) lagging countercyclical D) lagging procyclical E) none of the above
Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in
a. long lunches b. corporate jets c. plush offices d. None of the answers is correct. e. All of the answers are correct.
Keynes believed that
A) Say's law would hold in a laissez-faire economy. B) the economy would always be near or on its production possibilities frontier. C) wages and prices are often inflexible in the downward direction. D) the equilibrium level of output will always be at the full-employment level of output.