The dominant school of economic thought until midway through the Great Depression of the 1930s was:
A. classical.
B. Keynesian.
C. monetarism.
D. supply-side.
Answer: A
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Globo Public Supply has $1,000,000 in assets. Its demand curve is: P = 206 - .20•Q and its total cost function is: TC = 20,000 + 6•Q where TC excludes the cost of capital. If Globo Public Supply is UNREGULATED, find Globo's optimal price
a. $206 b. $106 c. $56 d. $6 e. $3
The exchange rate is the
A. Amount of currency that can be purchased with one ounce of gold. B. Balance-of-trade ratio of one country to another. C. Opportunity cost at which goods are produced domestically. D. Price of one country's currency expressed in terms of another country's currency.
Suppose the value of the price elasticity of demand is -3. What does this mean?
A) A 1 percent increase in the price of the good causes quantity demanded to increase by 3 percent. B) A 1 percent increase in the price of the good causes quantity demanded to decrease by 3 percent. C) A 3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent. D) A $1 increase in price causes quantity demanded to fall by 3 units.
Economic theory suggests that if natural resources can be held as private property, then
A. conservation will be nonexistent. B. people will simply hold them and refuse to make them available. C. owners will have an incentive not to abuse them. D. natural resources will be sold off for immediate use.