The price elasticity of demand for a vertical demand curve is:
A. perfectly elastic.
B. perfectly inelastic.
C. unitary elastic.
D. elastic.
Answer: B
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A characteristic of the unemployment rate is that ________
A) it typically goes up in a recession B) it typically goes down in a boom C) it is not clear whether it is a leading or a lagging indicator D) all of the above E) none of the above
An economy producing at an interior point of its production possibility frontier is ___
a. efficient, the economy is producing the highest possible quantities of all the goods b. inefficient, because resources are not full employed. c. efficient, because the economy is producing goods at the lowest possible cost d. inefficient, because that combination of goods could be produced at a lower cost if more efficient technology were employed
In which zone does the total physical product reach it maximum value?
a. Increasing marginal return b. Negative marginal return c. Diminishing marginal return d. Decreasing total physical product
Refer to the graphs shown.
The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A. C + D in graph (2). B. C in graph (2). C. A+ B in graph (1). D. A in graph (1).