When the price of footballs decreases by 12 percent, the quantity demanded increases by 4 percent. Which of the following does this example show?
a. total revenue decrease for an elastic price demand
b. total revenue increase for an elastic price demand
c. total revenue decrease for an inelastic price demand
d. total revenue increase for an inelastic price demand
c. total revenue decrease for an inelastic price demand
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After experiencing its first budget surplus in 30 years in 1998, for how many consecutive years following that did the budget remain in a surplus state?
A) 1 B) 2 C) 3 D) 4
Which of the following about Social Security is true?
a. Labor participation tends to increase as spousal earnings increase. b. Social Security works to the disadvantage of low-wage workers due to their shorter life expectancy. c. Low-wage workers derive a higher rate of return from their Social Security taxes than high-wage workers. d. High-wage workers generally begin full-time work at younger ages than low-wage workers.
If your business earns $10,000 in revenues, has explicit costs of $8,000, and implicit costs of $5,000, your economic profit is
A) $2,000. B) -$3,000. C) $5,000. D) $3,000.
When saving is less than planned investment in the aggregate expenditures model of a private closed economy then:
A. Real GDP will decrease B. The rate of interest will decline C. There will be a decline in the price level D. There will be a rise in real GDP