A price cut will decrease the revenue a firm receives if the demand for its product is
A. elastic.
B. inelastic.
C. unit elastic.
D. straight elastic.
Answer: B
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A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas. It can invest $50,000 in the purchase of the two inputs annually. The firm hires 5 units of capital at $1,000 per unit. If the going annual wage rate is $4,500, calculate the number of workers employed by the firm. (Assume that the firm spends the entire budget on K and L.)
a. 10 b. 5 c. 15 d. 9
Net exports is a negative number whenever
A. a nation's exports of goods and services exceed its imports. B. a nation's imports of goods and services exceed its exports. C. the nation's gross investment is on the decline. D. the nation's gross savings rate is on the decline.
Use the above figure. Graph ________ correctly depicts the short-run Phillips Curve.
A. A B. B C. C D. D
The level of long-run aggregate supply is affected by all of the following except
A) changes in the price level. B) changes in the technology. C) changes in the capital stock. D) changes in the number of workers.