Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the profit for this company?
A. $250,000
B. $25,000
C. $125,000
D. Cannot calculate profit without more information.
D. Cannot calculate profit without more information.
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In modern economies
A) some prices are very flexible while others are not. B) no prices are very flexible. C) all prices are very flexible. D) prices become less flexible as they increase.
"Lady Gaga concert sells out. 60,000 tickets sold." What can an economist conclude from the above headline?
A) There is a surplus of tickets. B) The market clears. C) The quantity supplied is 60,000. D) The quantity demanded is at least 60,000. E) Both C and D above.
Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. Which of the following statements is TRUE?
A) The production function has decreasing returns to scale. B) The production function has increasing returns to scale. C) The production function has constant returns to scale. D) Returns to scale vary with the level of output.
The inflation rate can be calculated as the percentage change in:
A. real GDP. B. the CPI. C. the exchange rate. D. nominal GDP.